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
Design and Implementation of a Quantum Cryptography Model for Military Communication at Nigerian Air Force Headquarters, Abuja
Background of the Study
Secure military communication is vital for national defense, ensuring that sensitive information is...
An investigation of freedom of worship in Kebbi City, Kebbi State.
Background of the Study:
Freedom of worship is a fundamental human right enshrined in international human rights law, as we...
INFLUENCE OF TRAINING PROGRAMMES ON THE JOB PERFORMANCE OF SECONDARY SCHOOL TEACHERS
Background to the Study
To assert that teaching is the oldest profession in the modern Nigeria should attract little or...
An Evaluation of Nurses’ Readiness for Mass Casualty Incidents at Ahmadu Bello University Teaching Hospital, Zaria
Background of the Study
Mass casualty incidents (MCIs) are events that overwhelm the healthcare system due to the numb...
Examining the Influence of Social Media on Voting Patterns in Gwadabawa Local Government Area, Sokoto State
Chapter One: Introduction
1.1 Background of the Study...
An Analysis of the Financial Challenges Facing Commercial Banks in Nigeria: A Case Study of GTBank
Background of the Study
Commercial banks are central to the economic development of any nation, as they facilitate finan...
A critical analysis of virtual event marketing on audience participation: Evidence from an online conference in Kano, Nigeria
Background of the study
Virtual event marketing has emerged as a transformative tool in engaging audiences, particularly in...
The Effect of Political Mentorship on Leadership Development in Kachia LGA, Kaduna State: A Case Study of Emerging Youth Leaders
Background of the Study
Political mentorship is a cornerstone of leadership development, fostering the transfer of knowl...
THE IMPACT OF INVESTMENT IN EMERGING MARKETS ON PORTFOLIO GROWTH
ABSTRACT
THE IMPACT OF INVESTMENT IN EMERGING MARKETS ON PORTFOLIO GROWTH
This research explores the impact of investment in em...
REFORMING THE UNITED NATIONS SECURITY COUNCIL: CHALLENGES AND PROSPECTS
Abstract
This study examines the prospects for and challenges against reforming the UN Security Council...
