External Debt Burden and its Impact on Growth: An Assessment of Major Macro- Economic Variables in Nigeria

Abstract

The study examines External debt burden and its impact on major macro economic variables in Nigeria. The Econometric method of co integration technique was applied to establish the quantitative impact and relative significance of the explanatory variables. The study shows that there exists a long run relationship among the major macro economic variables. The results show that External debt burden, foreign direct investment, inflation and Export have a positive relationship with economic growth. The study recommends that the Nigerian government should not contract further unproductive debt as it may be detrimental to the growth and development of the economy.

DOI: 10.5901/ajis.2013.v2n2p143