Debt and Debt Volatility: Effect on Economic Growth in Nigeria

Journal Title: Asian Economic and Financial Review - Year 2012, Vol 2, Issue 2

Abstract

Today the major economic problem of the developing nation is the effect and volatility of debt on the real development of the economy. Debt volume continues to increase while the GDP either remain constant or increase at a reduced marginal rate. The ordinary least square regression analysis and the general autoregressional conditional heteroscedasticity (GARCH) were used. The study attempts to estimate the effect and volatility of debt on the GDP. Secondary data was used and the E-view package adopted in the study. The study revealed that only lag in GDP affect the GDP volume, while debt and volatility in debt does not affect the GDP. There is no ARCH effect of debt on GDP. It was recommended that debt management regime should be refocused to ensure that debt repayment is exogenously determined. Moreover, future debt should be attached to a specific capital development program to ensure the growth in the economy.

Authors and Affiliations

James Sunday Kehinde| Faculty of Management Sciences, Lagos State University, Ojo, Nigeria

Keywords

Related Articles

ECONOMIC SANCTIONS, SPECULATIVE ATTACKS AND CURRENCY CRISIS

In this study, the effects of economic sanctions and speculative attacks on creating currency crisis have been investigated in Iranian economy during recent years. Economic sanctions can lead to currency crisis through t...

DOES TRADE WITH LABOUR SENDING COUNTRIES REDUCE DEMAND FOR MIGRANT WORKERS: A LESSON FROM MALAYSIA

This paper has three objectives. The first objective is to examine the long-run relationships among exports, imports, income and demand for migrant workers. This is followed by a causality test between these variables as...

GLOBALIZATION OPPORTUNITIES AND THEIR IMPLICATIONS ON BUSINESS OPERATIONS AND COMPETITIVENESS OF COMPANIES IN BOSNIA AND HERZEGOVINA

Globalization provides new business opportunities for companies all over the world and, at the same time, puts before them new challenges they need to adapt to in order to achieve success in the market. Also, global tren...

IS PAKISTAN STOCK MARKET MOVING TOWARDS WEAK-FORM EFFICIENCY? EVIDENCE FROM THE KARACHI STOCK EXCHANGE AND THE RANDOM WALK NATURE OF FREE-FLOAT OF SHARES OF KSE 30 INDEX

In this study, we have attempted to seek evidence for weak-form of market efficiency for KSE 100 Index because over the last five years KSE 100 Index has shown substantial growth as compared to other emerging stock marke...

ECONOMIES OF SCALE AND ALLOCATIVE EFFICIENCY OF RICE FARMING AT WEST SERAM REGENCY, MALUKU PROVINCE, INDONESIA

Economies of scale and allocative efficiency of rice farming has been conducted in technical irrigated field at Kabupaten Seram Bagian Barat – SBB (West Seram Regency), Province of Maluku. This study has the objectives t...

Download PDF file
  • EP ID EP1775
  • DOI -
  • Views 586
  • Downloads 33

How To Cite

James Sunday Kehinde (2012). Debt and Debt Volatility: Effect on Economic Growth in Nigeria. Asian Economic and Financial Review, 2(2), 325-329. https://www.europub.co.uk/articles/-A-1775