External Debts and Exchange Rates of Oil-Producing and Non-Oil-Producing Nations: Evidence from Nigeria and Pakistan

Draz, Muhammad Umar; Ahmad, Fayyaz

doi:10.12720/joams.3.1.8-12

Cited by 5 publications

(6 citation statements)

References 5 publications

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“…This may be attributed to the fluctuation of the exchange rate's unpredictability. Draz and Ahmad (2015) used data from Nigeria and Pakistan from 1965 to 2009 to examine the foreign debts and exchange rates of oil-producing and non-oil-producing countries using the Ordinary Least Square process. External debts have a statistically significant impact on the exchange rate of the Pakistani Rupee, but not on global oil prices, according to the results.…”

Section: Trend Analysis On Exchange Rate External Debt Stock and External Debt Service Payment In Recent Yearsmentioning

confidence: 99%

Empirical Analysis of External Debt Exposure to Exchange Rate Risk in Nigeria

Eze

Ogwu

Obozua

et al. 2021

Asian Journal of Economics and Empirical Research

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The study investigates external debt exposure to exchange rate risk in Nigeria. The Secondary data used were sourced from World Bank Development Indicators for all the variables from the period 1981 to 2019. By employing the Augmented Dickey-Fuller Unit root test and OLS estimation technique, the study found that external debt service payment (EXTDSP), total payment on external debt (TPEXTD), and trade openness (TROP) is significant. While External debt service payment (EXTDSP) and trade openness (TROP) is negatively impacting the exchange rate (EXCHR). TPEXTD has a positive significant impact on EXCHR at a 5% level of significance. The rest of the explanatory variables: external debt stock (EXTDS), gross domestic product growth rate (GDPGR), and real interest rate (RINTR) are all positive and insignificant at all levels of significance. The study, therefore, recommends that the government should go for concessional loans which has low-interest rate and are long-term in nature and as well encourage international trade with other countries of the world.

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Section: Trend Analysis On Exchange Rate External Debt Stock and External Debt Service Payment In Recent Yearsmentioning

confidence: 99%

Empirical Analysis of External Debt Exposure to Exchange Rate Risk in Nigeria

Eze

Ogwu

Obozua

et al. 2021

Asian Journal of Economics and Empirical Research

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“…The empirical researches on the correlation and effects of exchange rate on external debt have been estimated by Fida, Khan, and Sohall (2012), Bunescu (2014), Couharde, Rey and Sallenave (2015), Draz and Ahmad (2015), Nwanne and Richard (2015), Odera (2015), Saheed, Sani, and Idakwoji (2015), and Asonuma (2016). The effects of the variables could occur both in the short-and long-run.…”

Section: Previous Empirical Studiesmentioning

confidence: 99%

External Debt, Exchange Rate, and Unemployment in Selected ASEAN Countries

Cahyadin

Ratwianingsih

2020

jesp

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This research examines the empirical model of external debt, exchange rate, and unemployment in selected ASEAN Countries during 1980-2017. The countries included Indonesia, Malaysia, Thailand and the Philippines. The data were collected from the World Bank publications. The ARDL-ECM and Granger Causality Test (GCT) were employed to address the research objectives. The findings indicated that there were short-term effects on each empirical model (external debt, exchange rate, and unemployment). Furthermore, the stability test exhibited that the models were precise and stable. The GCT result showed that there was a causal between external debt, exchange rate, and unemployment, especially in Indonesia. Moreover, the linkages between external debt, exchange rate, and unemployment in selected ASEAN Countries were comovement. Therefore, the governments are expected to emphasis on macroeconomic policies, such as pro-stability of the exchange rate, external debt risk management, and pro-poor.

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“…Using the granger causality test and ordinary least square technique, Draz and Ahmad (2015) investigated the influence of foreign debt and crude oil prices on exchange rates in Pakistan. Time series data spanning 1965 to 2009 was collated for the analyses and estimation.…”

Section: Review Of Related Empirical Studiesmentioning

confidence: 99%

Impact of External Debt on Nigeria’s Foreign Reserve Portfolios

Ayunku

Markjackson

2020

Asian Journal of Economics and Empirical Research

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This study examines the impact of external debt and external debt servicing on the international reserves of Nigeria. The theoretical underpinning of the study was anchored on dual gap theory and the self-insurance theory of external reserves. The after effect research design was adopted to examine the components of the study in retrospect. Historical data spanning 1981 to 2018 was collated from the World Development indicators and analyzed using the error correction mechanism as the unit of analyses and estimated employing the least square technique. The empirical findings indicate that external debt stock exert a negative and statistically significant impact on Nigeria's foreign exchange reserve portfolios. It further emerged that external debt service payments exert a positive but statistically insignificant impact on the international reserves of Nigeria. The study concludes that external debt stock and external debt service payments has no significant impact on the international reserve portfolios of Nigeria. The study recommends that, the fiscal managers of Nigeria should exercise cushion in external borrowing in order to ensure that concomitant external debt service payments does not deplete the international reserves of the country.

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External Debts and Exchange Rates of Oil-Producing and Non-Oil-Producing Nations: Evidence from Nigeria and Pakistan

Cited by 5 publications

References 5 publications

Empirical Analysis of External Debt Exposure to Exchange Rate Risk in Nigeria

Empirical Analysis of External Debt Exposure to Exchange Rate Risk in Nigeria

External Debt, Exchange Rate, and Unemployment in Selected ASEAN Countries

Impact of External Debt on Nigeria’s Foreign Reserve Portfolios

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