Examination of External Debt’s Effect on Nigeria’s Economic Development (Published)
The research study titled, ‘The analysis of external debt on Nigerian economic growth’ assumes the analysis of the extent by which external debt has impeded Nigeria’s economic growth using parameters like Nigeria’s Gross Domestic Product (GDP), Human development Index (HDI), and the Misery Index. In light of this theoretical framework, this research adopts an ex-post facto research design and secondary data from the Central Bank of Nigeria Annual Bulletin to analyse the impact of external debt on the developing economy. Indeed, based on first, unit roots tests, second, cointegration analysis, and third, descriptive statistical analysis the study intends to verify hypotheses related to the consequences of external debt on GDP, HDI and the Misery Index. The paper argues that while foreign debt may be useful in financing development initiatives, proper approaches to dealing with debt are necessary in order to have positive impacts on development.
Keywords: External Debt, GDP, Human Development Index, Misery Index, Neo-Classical Growth Theory, Nigeria economy, economic growth