This paper investigates the dynamic effects of external debt on economic growth in Nigeria from 1970 through 2013. We begin by constructing an external debt sustainability index using principal component analysis to capture the overall effects of external debt indicators on economic growth. The empirical analysis is based on the ARDL bound test. The results show a long‐run cointegration relationship between the variables. While external debt exerts an adverse effect of −0.069 per cent on growth in the long run, the external debt sustainability index shows a positive effect of 0.072 per cent and 0.024 per cent on growth in the long and short run. The findings suggest the government should reduce its expenditure and mobilize revenue through domestic sources to invest in projects with a high rate of return to enable debt repayment and stimulate growth. To maintain debt ratios within a manageable threshold so as to avoid being debt trapped, foreign loans should only be contracted on concessional terms.
Socio-demographic factors play a significant role in increasing the individual's climate change awareness and in setting a favorable individual attitude towards its mitigation. To better understand how the adversative effects of climate change can be mitigated, this study attempts to investigate the impact of socio-demographic factors on the mitigating actions of the individuals (MAOI) on climate change. Qualitative data were collected from a face-to-face survey of 360 respondents in the Kuala Lumpur region of Malaysia through a close-ended questionnaire. Analysis was conducted on the mediating effects of attitudinal variables through the path model by using the SEM. Findings indicate that the socio-demographic factors such as gender, age, education, income, and ethnicity can greatly influence the individual's awareness, attitude, risk perception, and knowledge of climate change issues. The results drawn from this study also revealed that the attitudinal factors act as a mediating effect between the socio-demographic factors and the MAOI, thereby, indicating that both the socio-demographic factors and the attitudinal factors have significant effects on the MAOI towards climate change. The outcome of this study can help policy makers and other private organizations to decide on the appropriate actions to take in managing climate change effects. These actions which encompass improving basic climate change education and making the public more aware of the local dimensions of climate change are important for harnessing public engagement and support that can also stimulate climate change awareness and promote mitigating actions to n protect the environment from the impact of climate change.
This paper investigates the drives for increasing external debt in an open economy Nigeria over the period 1970 to 2017 using general to specific approach (GETS) approach (Hendry, 1995). The Johansen cointegration test confirms that variables have long run relationship. The empirical results for both long run and short run estimates indicate oil price, domestic savings and fiscal deficits play a significant role in increasing external debt in Nigeria. The study also found evidence that the dummy variables for exchange rate and debt relief also accelerate the growth of external. This finding indicates that, after the multilateral debt relief between 2005 and 2006, fresh loans are still coming to Nigeria. To this end, Nigeria should focus on investment in real sectors especially in agriculture and manufacturing to increase export performance. This would enable the country to generate adequate foreign earnings and stimulate domestic savings, and reduce reliance on oil revenue.
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