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
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Englisch
- Bibliographic citation
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Journal: Cogent Economics & Finance ; ISSN: 2332-2039 ; Volume: 9 ; Year: 2021 ; Issue: 1 ; Pages: 1-19
- Classification
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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
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ARDL cointegration
Debt overhang
Debt servicing
Economic growth
Government debt
- Event
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Geistige Schöpfung
- (who)
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Yusuf, Abdulkarim
Saidatulakmal Mohd
- Event
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Veröffentlichung
- (who)
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Taylor & Francis
- (where)
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Abingdon
- (when)
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2021
- DOI
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doi:10.1080/23322039.2021.1946249
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
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