Effect of External Borrowing and Foreign Aid on Economic Growth in Nigeria

Ugwuegbe, Ugochukwu Sebastine; Okafor, I. G.; Akarogbe, Christian Azino

doi:10.6007/ijarbss/v6-i4/2087

Cited by 9 publications

(9 citation statements)

References 8 publications

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“…Other receipts however have a positive but insignificant relationship at a p-value of 0.231 with capital expenditure which fails to reject the a priori null expectation. This is in line with the findings of Akujobi and Kalu (2009); Dang, Bako and Lalu (2016) and Ugochukwu and Okafor (2016). The finding indicates that a N1 increase generated from other receipts will lead to an increase in capital expenditure by N0.444.…”

Section: Data Presentation and Analysissupporting

confidence: 91%

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Impact of State Government Revenues on Infrastructural Development in Bauchi State Nigeria

Hammayo¹,

Shittu²,

Abdullahi³

2020

IJAT

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The study examines the impact made by the efforts of Bauchi State Government in the development of infrastructure represented by the level of capital expenditure incurred through the utilization of the state's revenues. Secondary data was obtained from the government's Annual Financial Statements for the period 2006 to 2018. Ordinary Least Square regression was employed as the technique of analysis. The findings of the study revealed that share of allocation received from the federation account as well as debt both had a positive and significant influence in the provision of infrastructure while internally generated revenue, showed a negative and significant relationship. Other receipts comprising of contributions from Local Governments for the execution of joint projects as well as local and foreign grants and assistance received indicated a positive but insignificant relationship. The study recommends that policy makers should ensure a reasonable allocation of federation account revenues towards capital projects implementation. Efforts at the mobilization of internally generated revenue and grants should be intensified with funds realized used along with funding drawn from the Local Governments as well as proceeds of debts raised towards the provision of the infrastructural needs of the state.

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Section: Data Presentation and Analysissupporting

confidence: 91%

“…A study on the effect of foreign aid on the growth of the Nigerian economy by Ugochukwu and Okafor (2016) used time series data for the period 1980 to 2013. Ordinary least squares regression was used to analyse the effect of the independent variables to growth domestic product.…”

Section: Literature Review and Theoretical Frameworkmentioning

confidence: 99%

Impact of State Government Revenues on Infrastructural Development in Bauchi State Nigeria

Hammayo¹,

Shittu²,

Abdullahi³

2020

IJAT

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“…The results indicate the existence of a positive nexus between foreign reserves and external debt on foreign exchange rate in Nigeria. Ugwuegbe et al (2016) investigated the impact of foreign debt and foreign grant on economic growth in Nigeria, using time series data spanning 1980 to 2013. The data was estimated using the error correction technique following the least square technique.…”

Section: Review Of Related Empirical Studiesmentioning

confidence: 99%

Impact of External Debt on Nigeria’s Foreign Reserve Portfolios

Ayunku

Markjackson

2020

Asian Journal of Economics and Empirical Research

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This study examines the impact of external debt and external debt servicing on the international reserves of Nigeria. The theoretical underpinning of the study was anchored on dual gap theory and the self-insurance theory of external reserves. The after effect research design was adopted to examine the components of the study in retrospect. Historical data spanning 1981 to 2018 was collated from the World Development indicators and analyzed using the error correction mechanism as the unit of analyses and estimated employing the least square technique. The empirical findings indicate that external debt stock exert a negative and statistically significant impact on Nigeria's foreign exchange reserve portfolios. It further emerged that external debt service payments exert a positive but statistically insignificant impact on the international reserves of Nigeria. The study concludes that external debt stock and external debt service payments has no significant impact on the international reserve portfolios of Nigeria. The study recommends that, the fiscal managers of Nigeria should exercise cushion in external borrowing in order to ensure that concomitant external debt service payments does not deplete the international reserves of the country.

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“…The outcomes of the study indicated that foreign aid had a positive impact on the economic growth of Bangladesh, although foreign aid delivered diminishing returns because of decreasing utilization of the aid. Similarly, Ugochukwu et al (2016) examined the effect of foreign borrowing and foreign financial aid on the growth of Nigeria from 1980 to 2013. The study used the OLS multiple regression model to determine the causal effect among the variables, ADF to check the stationarity, and Johansen cointegration to test the long-run association.…”

Section: Foreign Aid and Economic Growthmentioning

confidence: 99%

Effects of Foreign Debt and Foreign Aid on Economic Growth in Somalia

Ali¹,

Dalmar²,

Ali³

2018

IJEF

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This paper aims to assess the effects of foreign debt and foreign aid on economic growth in Somalia from 1970 to 2014. The ordinary least squares (OLS) method was used and basic model assumption tests were also employed. We used the Augmented Dickey−Fuller (ADF) and Philip-Perron (PP) tests for the unit root and the Johansen cointegration test to determine the long-run relationship between the variables. The results of the study show that, in Somalia, foreign debt has an insignificant effect on economic growth, while the foreign aid has positive significant effect on economic growth. The results also indicate that the cointegration method confirms the incidence of long-run association among the variables. There is little research regarding the exact relationship between increasing foreign debt and foreign aid on economic growth in Somalia. This study is also different from previous studies as we used ADF and PP tests for the unit root and the Johansen cointegration test for the long-run relationship between the variables. Additionally, the study used multivariate techniques. The paper concludes that foreign aid is essential in economic growth and several policy implications are proposed.

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Effect of External Borrowing and Foreign Aid on Economic Growth in Nigeria

Cited by 9 publications

References 8 publications

Impact of State Government Revenues on Infrastructural Development in Bauchi State Nigeria

Impact of State Government Revenues on Infrastructural Development in Bauchi State Nigeria

Impact of External Debt on Nigeria’s Foreign Reserve Portfolios

Effects of Foreign Debt and Foreign Aid on Economic Growth in Somalia

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