Title: External Debt And Economic Growth In A Developing Economy
Authors: Prof. Ehiedu, V.C. Ph.D; Erhijiakpor A.E.O. Ph.D & Omonode A.T. M.Sc
Volume: 9
Issue: 2
Pages: 74-82
Publication Date: 2025/02/28
Abstract:
The study explored the coexistence between external debt (EXTD) and economic growth (EG) in a Developing Economy like Nigeria, for the period of 2000-2022 which is 23years. Secondary data were sourced from CBN publications for the EGwas proxied by Real Gross Domestic Product (RGDP), whereas EXTD was proxied by EXTD Stock (EDS), EXTD Servicing (EDTS), Exchange Rate (EXCHR) and Interest Rate (INTR) for this study. The data set was described using descriptive statistics, diagnostics tests, correlation analysis and Multiple Regression analysis were employed via E-VIEW version 9.0. The outcomes indicated that INTR and EXCHR have a significant effect on RGDP in Nigeria; however EDS and EDTS have a no significant effect on RGDP in Nigeria. The study concluded that EXTD has a mixed effect on EGin Nigeria. Based on its findings, government should put modalities in place to reduce to reduce EXTD stock and servicing in the bids to stimulate EG in the country.