External Debt-Growth Nexus in Nigeria Revisited

Jibir, Adamu; Abdullahi, Salihu; Abdu, Musa; Buba, Abdullahi; Ibrahim, Bello

doi:10.18488/journal.aefr.2018.81.117.130

Cited by 15 publications

(13 citation statements)

References 11 publications

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“…Neo-classical theorists accepted technology and human capital as exogenous factors which determine long run economic growth (Jibir et al, 2018;Kar & Ağır, 2006). The endogenous growth models emphasize human capital as a major determinant of long-run economic growth.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact Of Human Capital On Nigeria's Economic Growth

Bachama

Hassan

Ibrahim

2021

ESJ

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Despite abundant evidence at microeconomic level, the role of human capital in promoting economic growth and development has not been well documented at the macroeconomic level – specifically in developing countries. This paper seeks to examine the role of human capital on economic growth in Nigeria using time series data covering the period from 1970-2019. The data are sourced from Central Bank of Nigeria (CBN) statistical bulletin and World Development Indicators of the World Bank. The data are analyzed using Autoregressive Distributed Lag model (ARDL). The study reveals that expenditure on health and education are found to be positively and significantly related with economic growth both in the short-run and long-run. However, labor negatively impact on economic growth and it was found to be significant. Again, trade openness and inflation are insignificant in explaining economic growth in this paper. Thus, the paper recommends that, Nigerian government should focus on improving the educational and health sector. Meaning that, huge amount of government budgetary allocation should be directed toward educational and health sector. So also, government should create more jobs opportunities (through skills acquisitions/ vocational training) to minimize the unemployment rate in the country.

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Section: Literature Reviewmentioning

confidence: 99%

The Impact Of Human Capital On Nigeria's Economic Growth

Bachama

Hassan

Ibrahim

2021

ESJ

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“…A 1% increase in external debt will cause a reverse effect in the rate of GDP growth by about 11.7% and 18.5% in both terms respectively. This implies that external debt component of the external capital inflow is detrimental to the course of economic growth in Nigeria as supported by the work of Moh'd and Jaradat (2019) and Jibir et al (2018). Interestingly, the revelation from the finding shows that foreign aids is a key contributor to the path of economic growth in Nigeria.…”

Section: Preliminary Analysismentioning

confidence: 86%

“…The outcome invalidates the conventional theory that external loans will benefit the domestic economy. Jibir et al (2018) examined the impact of external debt on economic growth in Nigeria using the dynamic ARDL approach.…”

Section: Studies (Seementioning

confidence: 99%

“…However, this study differs from Chenery and Stout (1967) in term of the components that made up the external capital by incorporating FDI inflow and external debt to the model in addition to foreign aids to form the totality of foreign capital. Additionally, this study differs in term of modelling from the recent pieces of literature on Nigeria (See (Jibir et al 2018;Odubuasi et al 2018;Gungor and Rigim 2017) by identifying GDP as the target/dependent variable, while the explanatory variables include the component of domestic capital (domestic savings) and foreign capital (external debt, FDI inflow and foreign aids) which align with the work of Prasad et al (2007) for panel study. The linear form of the model is started as follow:…”

Section: Functional Model Specificationmentioning

confidence: 99%

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Domestic Capital Flow VS Foreign Capital InFlow in Nigeria: Which One Matter Most?

Joshua¹

2021

Kırklareli Üniversitesi Sosyal Bilimler Dergisi

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The path to achieving economic growth as well as the ultimate economic development is the greatest macroeconomic goal sought after by all global economies. Traditionally, these resources are classified as labour and capital. Therefore, we focus on the capital factor and its impact on economic growth. This study for the first time in Nigeria classifies the capital resources into two categories namely domestic and foreign capital and to compare their respective influence on economic growth. The results show that domestic capital is more influential in promoting the cause of economic growth whereas external debt as one of the components of foreign capital exerts serious level of threat to the course of economic expansion in Nigeria. Thus, this study recommends the need for the authority concern to look inward in resolving it economic challenges through domestic mobilization of resources. Sourcing for external capital should strictly take the form of FDI and foreign aids to augment the domestic capital for economic reasons with the view to expand the productive capacity of the economy.

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“…The study also found a directional causality relationship between unemployment, external debt, GDP and national expenditure. Jibir et al (2018): This study aimed to analyze the relationship between the debt and economic growth in Nigeria . The study was based on the econometric method (ARDL) and applied on the time series data for Nigeria during the period 1981-2016.…”

Section: Nguyen (2018)mentioning

confidence: 99%

The Factors Affecting The External Debt: Case Of Turkey

Arslan¹

2019

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This study aims to examine the most important factors affecting the external debt in the Turkish economy. The relationship between the external debt and GDP, exports, imports, debt service to exports, foreign direct investment, reserves of foreign exchange and official exchange rates is estimated during the period 1980-2017, based on a number of standard studies in this field. In analyzing the time series, the study applies Johansson's co-integration test and Granger's Causality test within the VAR model. The study concluded to the following results: 1.There is a cointegration relationship between the study variables. That's, that there is a long-term equilibrium relationship between the external debt and its determinants. 2. There is a directional causal relationship from the foreign reserve to the external debt. 3. There is a directional causal relationship from the external debt to the exports. 4. The results of estimating regression model in the long-term showed that GDP, FDI, debt service to exports and foreign reserves are the most important factors affecting the external debt.

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External Debt-Growth Nexus in Nigeria Revisited

Cited by 15 publications

References 11 publications

The Impact Of Human Capital On Nigeria's Economic Growth

The Impact Of Human Capital On Nigeria's Economic Growth

Domestic Capital Flow VS Foreign Capital InFlow in Nigeria: Which One Matter Most?

The Factors Affecting The External Debt: Case Of Turkey

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