THE EFFECT OF EXTERNAL DEBT ON ECONOMIC GROWTH OF NIGERIA(1981-2010)
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
This work evolved out of the need to provide an in-depth understanding of the economics of debt in Nigeria. This study aims at analysing the effectiveness of external debt on economic growth within a span of 1981-2010. The broad objective of this work is specified to evaluate the impact of external debt stock and debt servicing on economic growth. In all, the models were to show the growth relationship between the independent variables-inflation rate, exchange rate, interest rate, government expenditure, external debt stock and external debt service and the dependent variable-gross domestic product (GDP). The data were collected from CBN Statistical Bulletin 2010 and the Debt Management Office (DMO) quarterly report. The Engle & Grenger Cointegration and Ordinary Least Square (OLS) were employed in the cause of this study. The Augmented Dickey Fuller test (ADF) shows that the variables are stationary and reliable for forecasting. The choice of OLS is most appropriate for the study in terms of goodness of fit and significance of regression coefficients. The result of the analyses showed that rising external debt stock inhibits the pace of economic growth of Nigeria by increasing the cost of its servicing beyond the debt sustainability limit while external debt servicing was found not to impair economic growth. Summary and policy recommendations were presented in line with our stated objectives and facts then conclusions were made. It was found that external debt stock rises rapidly due to accrued compound interest and loans were secured for dubious projects. Part of the policy recommendations were that Nigeria should increase its export base by investing borrowed funds in productive ventures and she should also seek fixed interest payment, varying amortization schemes and multi-year rescheduling.
Related Project Materials
SMALL AND MEDIUM SCALE ENTERPRISES AND THEIR ROLE IN UNEMPLOYMENT REDUCTION
EXCERPT FROM THE STUDY
Unemployment is widely regarded as a manifestation of fundamental microeconomic disequilibrium. W...
ASSESSING FAKE DRUGS AND PEOPLE'S PERCEPTION OF HEALTH CARE DELIVERY SYSTEM IN NIGERIA
BACKGROUND OF THE STUDY
Drug Faking is a global public health problem, because the effects can be felt from both the cou...
ASSESSMENT OF EARLY CHILDHOOD EDUCATION AND LEADERSHIP SKILLS
ABSTRACT: Early childhood education plays a pivotal role in developing lea...
OIL IN NIGERIAN PROSE FICTION: A STUDY OF HELON HABILA’S OIL ON WATER AND KAINE AGARY’S YELLOW YELLOW
ABSTRACT
The history of oil exploration and production in the Niger Delta is a long, complex and often...
SOFTWARE DEVELOPMENT FOR POST PRIMARY EDUCATION
ABSTRACT
The focus of this study is to examine software development for post primary education using Ri...
CYBERBULLYING DETECTION USING WEAKLY SUPERVISED AND FULLY SUPERVISED LEARNING
ABSTRACT
Machine learning is a very useful tool to solve issues in multiple domains such as sentiment analysis, fake news detection, faci...
A SURVEY ON THE CAUSES OF FRAUD AND WAYS OF PREVENTING IT IN NIGERIA'S PUBLIC SECTORS
BACKGROUND OF THE STUDY
The problem of fraud in the public sector has assumed immense proportions with...
DESIGN AND CONSTRUCTION OF 20WATTS WIRELESS PUBLIC ADDRESS SYSTEM
ABSTRACT
It has become inevitable that there would be communication and due to the inherent limitation of the human voice, the public add...
EXAMINING THE IMPORTANCE OF TECHNICAL EDUCATION TRAINING OF SECONDARY SCHOOL STUDENTS IN TEACHING AND LEARNING
EXCERPT FROM THE STUDY
According to Dike (2005), Vocational Education and training “prepares learners for careers...
THE PROBLEMS AND EFFECT OF OLD AGE
ABSTRACT
The study was designed to identify the problems and effects of old age in Udi Local Government Area of Enugu St...
