The impact of external debt on economic growth: a comparative study of nigeria and south africa folorunso s ayadi university of lagos felix o ayadi texas southern university abstract this paper investigates the impact of the huge external debt, with its servicing requirements, on economic. Aug 7, 2017 external debt is a vital source of public financing in developing countries and carries the potential to play a key role in promoting economic growth traditional literature regarding economic growth has emphasised the positive role of debt in economic development it helps sustain growth by reducing the. This paper extends the panel estimation of oecd countries described in turner and spinelli (2012) to investigate the effect of external debt and its interaction with government debt on the interest-rate-growth differential the inclusion of net external debt is found to be significant in both economic and. Dubai-uae 14-16 october, 2016 paper id: df601 1 wwwglobalbizresearch org impact of external debt on economic growth in nigeria: an ardl bound testing approach mbah stella a umunna godwin agu osmond c department of economics and development studies federal university, oye- ekiti ekiti state.
This paper investigates the impact of the huge external debt, with its servicing requirements, on economic growth of the nigerian and south african economies the external debts of nigeria and south africa are analyzed in a new context utilizing traditional, but innovative, models and econometric techniques. Findings can be summarized as follows firstly, public and/or private external borrowing has negative impact on growth both in regime at zero and regime at one secondly, the negative impact of public borrowing on economic growth and development is higher than that of private borrowing on economic growth and. The greatest danger arises when future debt servicing requirements are ignored a sharp increase in external debt may allow high gdp growth in the short run, but eventually the resulting debt service will become unsustainable this study therefore, examines the impact of external debt on economic. Apr 8, 2011 the objective of this study was to contribute to the knowledge about the effects of external debt on economic growth in zambia during the period 1975 to 2000 the results were expected to help substantiate the case for significant debt reduction and even outright cancellation for developing countries like.
In our study we investigate the impact of external debt on economic growth in transitional countries recent economic literature, both theoretical and empirical, has devoted great attention to this question empirical studies on developing countries have not come to a definite conclusion on this issue even though different. Abstract this study investigates the effect of the external debt burden on economic growth and development of nigeria it adopted regression analysis of ols on secondary data sourced from cbn, economical and financial review business times, financial standard and relevant publication from nigeria on variable like. Abstract: this research work was aimed at ascertaining the impact of external debt on economic growth in nigeria ex-post facto research design was adopted for the study while data on gross domestic product (gdp), external debt stock and external debt service payment were obtained from world bank. The effects of external debt on economic growth have been a subject of debate in the academic and policy circles the debates arouse from poor economic performance in many developing countries amidst accumulation of external debt however, there are competing hypotheses about the effect of external debt on.
Beyond what level does external debt impair economic performance what is the quantitative effect of debt on economic growth for the typical developing country is the effect of debt on growth nonlinear—in other words, does the effect on growth of additional debt vary, depending, for example, on the level of the debt stock. This paper aims to investigate the impact of huge external debt with its servicing requirements on economic growth of the nigerian economy so as to make meaningful inference on the impact of the debt relief which was granted to the country in 2006. Incorporate the effects of debt on poverty the model is estimated by using standard panel data estimation methodologies the results shows that although public debt has a negative impact on economic growth, neither public external debt nor external debt servicing has a significant relationship with.
Abstract the impact of external debt on economic growth is a debatable issue between scholars since the onset of the debt crisis in 1980's this thesis examines whether external debt affects the economic growth of selected heavily indebted poor african countries through the debt overhang and debt crowding out effect.
This paper uses a structural vector autoregression generalized economic growth model augmented with a debt variable to characterize the dynamic impact of innovations to external public debt-to-gdp. Effect of external public debt on economic growth: an empirical analysis of east african countries halima ibrahim x50/67234/2013 a research paper submitted in partial fulfilment of the requirements for the award of a degree of master of arts economics, university of nairobi november. The guinean state has difficulty honouring its external debt maturities because of lack of foreign exchange we therefore chose this theme in order to review the impact of debt on economic development and recommend economic policy solutions, in particular regarding debt manage- ment to assess the impact of external. This paper estimates empirically the impact of external debt an economic growth in ghana to determine the existence of a 'debt overhang' and/or 'crowding out' effects for the period 1970 to 1999 we used the adf, pp and kpss tests for unit roots and the johansen-juselius multivariate approach to cointegration to test for.