Obiamaka P. Egbo, Eucharia Ajibo


The study was aimed at exploring the effect of external debt burden on economic growth in Nigeria. For the purpose of estimating the variables under study, this uses a multiple regression (OLS) model. The data is firstly tested for stationarity using the Augmented Dickey-Fuller (ADF) tests. In order to test for co-integration, the Johansen co-integration technique is used for normality test (Jarque-Bera) and serial correlations were used. The variables are made up of real GDP, money supply and external debt. The result revealed that external debt burden had a negative and insignificant effect on the Nigeria economic growth (coefficient = -1.31, p-value = 0.27). Based on the findings the study recommends alternative sources of government revenue to be utilised fully for this will minimize over dependence of government on foreign debt and therefore foster economic growth.


JEL: F30, F34, F40


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economic growth, external debt burden, debt servicing and public investment

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DOI: http://dx.doi.org/10.46827/ejefr.v0i0.850


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