Economic and Financial Review


Central Bank of Nigeria.


External Debt, Economic Community of West African States, ECOWAS, Panel Data Analysis, ECOWAS


This paper recognised the importance of identifying the core determinants of external debt dynamics in ECOWAS economies. Using a panel dynamic generalised least squares procedure, the study sought to identify the core determinants of external debt dynamics in 12 ECOWAS economies from 1970 to 2009. Overall, the findings revealed six core determinants of external debt in ECOWAS economies. Inflation, external reserves, per capita income and real oil prices were inversely related with external debt ratio; while, GDP gap and real effective exchange rate depreciation directly affected external debt. Significant dissimilarities were observed in the influence of government size and inflation within the WAEMU and the WAMZ subsamples, implying that a synchronisation of debt and fiscal policies for the two regions might yield different outcomes. Further, the results suggested that there was a wide deviation in the initial conditions Guinea-Bissau and Burkina Faso from the other economies in the region.

Author Bio

Chuku Chuku is with the Department of Economics, University of Uyo.

Publication Title

CBN Economic and Financial Review





Recommended Citation

Chuku, A. Chuka (2013). Analysis of External Debt Dynamics in ECOWAS Economies. CBN Economic and Financial Review. 51(2), 93-114.



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.