•  
  •  
 

Economic and Financial Review

Publisher

Research Department, Central Bank of Nigeria

Keywords

External Debt, Economic Growth, Public Investment, Nigeria

Abstract

This paper studies the impact of external indebtedness on Nigeria’s economic performance. We find supportive evidence for the crowding out and debt overhang hypotheses in Nigeria. Based on these results, the paper concludes that the prospects of resolving the debt crisis in Nigeria will depend on deeper debt relief, diversification of export base and substantial direct foreign investment. Debt relief will enable the country to use the lean foreign exchange earnings to procure the badly needed inputs for the industrial sector and upgrading of infrastructures. However, without a stable political and macroeconomic environment, efforts at reducing the external debt burden may not be very successful.

Issue

44

Volume

1

Recommended Citation

Amin, Aloysius Ajab & Audu, Isa, (2006). External Debt, Investment and Economic Growth: evidence from Nigeria. Economic and Financial Review, 44(1), 99-136.

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.