Impact of public debt profile on economic growth: Evidence from Nigeria

Abstract

An excessive increase in public debt characterizes the contemporary development of the global economic and financial system. The paper aims to examine the short- and long-run impact of state debt on economic growth in Nigeria. The model was estimated using an autoregressive distributed lag (ARDL) bounds testing method to co-integration for the long-run investigation. At the same time, the contemporaneous dynamics were explored using an unrestricted error correction model. The data were collected from the Central Bank of Nigeria’s statistical bulletins and annual reports, and it spanned the years from 1990 to 2020. The study uncovers evidence of a long-term link between the study variables. In addition, the study finds that all the explanatory is statistically significant. Specifically, economic growth is significant and negatively responsive to changes in external debt by 0.19% and debt servicing by 0.07%, contrary to its positive response to changes in domestic debt and exchange rate by 0.27% and 0.18%, respectively. The paper, therefore, recommends that government may consider more domestic borrowings to foreign borrowings that should only be resorted to when it is indispensable. Moreover, the government should also strive to balance loan servicing and the economic sustainability.

The public debt of Ukraine in the economic development policy in the war and post-war periods: Bibliometric analysis

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The Macroeconomic Effect of Access to Credit and Population Growth on the Nigerian Agricultural Productivity: An Empirical Study of 2000 to 2021

“…In order to boost agriculture productivity and ensure food security, successive governments in Nigeria embarked on different policies and programs aimed at accelerating productivity in the agriculture sector. These include Operation Feed the Nation of 1976-1980 during the regime of General Olusegun Obasanjo, the Green Revolution of 1980 introduced by Alhaji Shehu Shagari, as well as the Directorate for Food, Road, andRural Infrastructure in 1985-1986 during the Gen. Babangida administration (Aiyedogbon, O., Zhuravka, F., Korneyev, M., BanchukPetrosova, O., & Kravchenko, O. 2022).…”

Public debt management and economic growth: A threshold regression approach

“…However, the optimal level of state debt from abroad still needs to be assessed (Dinh, 2020d;Jacobs et al, 2020;Liu & Lyu, 2021). Shvets (2017), Aiyedogbon et al (2022), and Presbitero (2012) referred to estimates of the threshold ratio of public debt to GDP in developing economies experiencing the impact of excessive public debt on macroeconomic dynamics. The results found a threshold ratio of 40% of GDP, meaning that public debt accounts for 40% of the total national output produced in a year.…”