Artikel

The impact of government debt on economic growth in Nigeria

This study investigated the effect of government debt on Nigeria's economic growth using annual data from 1980 to 2018 and the Autoregressive Distributed Lag technique. The empirical results showed that external debt constituted an impediment to long-term growth while its short-term effect was growth-enhancing. Domestic debt had a significant positive impact on long-term growth while its short-term effect was negative. In the long term and short term, debt service payments led to growth retardation confirming debt overhang effect. The findings suggested that the government should direct the borrowed funds to the diversification of the productive base of the economy. This will improve long-term economic growth, expand the revenue base and strengthen the capacity to repay outstanding debts when due. Fiscal improvements that encourage domestic resource mobilization, efficient debt management strategies and reliance on domestic debt rather than external debt for increased deficit financing to engender greater growth are the main contribution of the study.

Language
Englisch

Bibliographic citation
Journal: Cogent Economics & Finance ; ISSN: 2332-2039 ; Volume: 9 ; Year: 2021 ; Issue: 1 ; Pages: 1-19

Classification
Wirtschaft
Economic Education and Teaching of Economics: Undergraduate
Fiscal Policy
Trade and Labor Market Interactions
General Financial Markets: Government Policy and Regulation
Tax Evasion and Avoidance
Subject
ARDL cointegration
Debt overhang
Debt servicing
Economic growth
Government debt

Event
Geistige Schöpfung
(who)
Yusuf, Abdulkarim
Saidatulakmal Mohd
Event
Veröffentlichung
(who)
Taylor & Francis
(where)
Abingdon
(when)
2021

DOI
doi:10.1080/23322039.2021.1946249
Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Artikel

Associated

  • Yusuf, Abdulkarim
  • Saidatulakmal Mohd
  • Taylor & Francis

Time of origin

  • 2021

Other Objects (12)