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The impact of external debt on economic growth and development of Nigeria

 Department: Banking and Finance  
 By: usericon samadchuks  

 Project ID: 5446
   Rating:  (3.2) votes: 11
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   Price:₦2000
Abstract
This work evolved out of the need to provide an in-depth understanding of the economics of debt in Nigeria. The study aims at analyzing the effectiveness of external debt on economic growth within a span of 2000 to 2015. The broad objective of this work is to ascertain the impact of external debt burden on economic growth in Nigeria. The data for the analyses were obtained from primary data through questionnaire and secondary data from Nigeria Central Bank, debt management office and internets. Three (3) hypotheses were formulated and tested using simple percentages, chi-square (x2) statistical techniques at 5% level of significance and granger causality test. The first hypothesis shows that there is no problem in the long-run relationship between external debt and economic growth, which led us to accept the Ho. The granger causality test revealed that there is a weak negative correlation between GDP and Debt servicing and a fair positive correlation between GDP and external debts. The multiple regressions indicated that about 19% changes in GDP growth are caused by external debt and debt servicing. The study concluded that Nigerian political leaders need to develop homegrown policies to enhance the country’s competitive advantage in the international market in this era of globalization. The study recommended that external debt should be contributed solely for economic reasons and not for social or political reasons. This is to avoid the accumulation of external debt stock over time and prevent on obscuring of the motive behind external debt....
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