IMPACT OF EXTERNAL DEBT ON ECONOMIC GROWTH IN SELECTED SUBSAHARA AFRICAN COUNTRIES
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 5000
ABSTRACT
This study investigated the impact of external debt on economic growth in selected Sub-Sahara African Countries using time series data from 1986 to 2020. The countries selected for the study include Angola, Cameroon, Kenya and Nigeria. The specific objectives include: to investigate the impact of external debt stock on economic growth; to evaluate the impact of external debt servicing on economic growth; to investigate the impact of inflation on economic growth; and to examine the impact of exchange rate on economic growth. Solow Growth model formed the theoretical basis for this study. Longitudinal research design was adopted. External debt stock, external debt service, inflation rate and exchange served as the independent variables while real gross domestic product served as the dependent variables. Data were sourced on these variables from the Central Bank of Nigeria Statistical Bulletin, 2020 and World Development Indicators. Descriptive statistics, Augmented Dickey Fuller unit root test, Johansen Cointegration Test and Error Correction Mechanism (ECM) were employed in analyzing the data. The result of the descriptive statistics indicates that all the variables are normally distributed. Augmented DickeyFuller (ADF) test statistics showed that all the variables used in this study were stationary at first difference. The results of the Johansen Cointegration Tests indicate that there is a long run relationship between dependent and the explanatory variables in each of the models. The results of the estimation techniques indicate that external debt stock has significant impact on economic growth; external debt servicing has significant impact on economic growth; inflation has significant impact on economic growth; and exchange rate has no significant impact on economic growth in Angola, Cameroon, Kenya and Nigeria. The study concluded that external debts have significant impact on economic growth in selected Sub-Sahara African Countries. The study recommends that amongst others that government should direct the borrowed funds to the diversification of the productive base of the economy to improve long-term economic growth, expand the revenue base and strengthen the capacity to repay outstanding debts when due.
Related Project Materials
An examination of the use of open access repositories by polytechnic lecturers in Auchi Polytechnic, Edo State
Background of the Study:
The adoption of open access repositories has revolutionized academic research by providing free an...
THE INFLUENCE OF CULTURAL COMPETENCE ON ADMINISTRATIVE PERFORMANCE
THE INFLUENCE OF CULTURAL COMPETENCE ON ADMINISTRATIVE PERFORMANCE
Abstract: This stud...
Operationalization of the Cashless economy system in Nigeria
&nb...
An Assessment of Children's Rights Protection in Almajiri Education Systems in Bauchi, Bauchi State
Background of the Study
The Almajiri system, a traditional Quranic education system in Northern Nigeria...
An Investigation of Nurses’ Role in Preventing Musculoskeletal Disorders Among Hospital Staff in Taraba State Healthcare Facilities
Background of the Study: Musculoskeletal disorders (MSDs) are a leading cause of workplace injury among heal...
The Effect of Customer Relationship Management on Service Delivery in Glo Nigeria, Taraba State
Background of the Study
Customer Relationship Management (CRM) is a strategic approach that organizations use to manage their interaction...
ATTITUDE OF STUDENTS TOWARDS THE STUDY OF EARLY CHILDHOOD EDUCATION
Background of the study
Generally, the term ‘early childhood education’ could be used to describe the care a...
An evaluation of affiliate marketing effectiveness on market expansion: Evidence from a tech gadget brand in Kaduna.
Background of the study:
Affiliate marketing has emerged as a strategic tool for market expansion, particularly for tech gadget brands se...
The Role of News Documentaries in Promoting Historical Preservation in Jos South LGA, Plateau State
Chapter One: Introduction
Evaluating the Impact of Public Investment in Urban Infrastructure on Economic Productivity in Nigeria
Background of the Study
Public investment in urban infrastructure—encompassing roads, utilities, and public facilitie...
