文章基本信息

标题：A Reappraisal of the Link between External Debt and Domestic Investment in Nigeria
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作者：Amassoma Ditimi ; Adeniran Oluwagbenga
期刊名称：European Journal of Economic Studies
印刷版ISSN：2304-9669
电子版ISSN：2305-6282
出版年度：2017
卷号：6
期号：1
页码：25-41
语种：
出版社：Academic Publishing House Researcher
摘要：This study explores external debt and economic growth nexus in Nigeria. Although external borrowing is targeted to put an economy on the pedal of growth cycle, provided such resources obtained are utilized efficiently in a well-directed manner. This has not been the case with Nigeria due to lack of optimally utilizing this contracted loans for its original goal hence making repayment a burden which has culminated a lot of contention among scholars, policy makers, and government agencies to mention a few. This study was carried out to investigate the nexus between external debt and domestic investment via economic growth in Nigeria between the periods 1980 to 2014. The study employed OLS regression method to ascertain the said relationship. The results shows that external debt exerts a negative and significant effect on private in Nigeria, while domestic debt had a positive and significant influence on private investment in Nigeria during the study periods, indicating that external debt impedes private investment in Nigeria. So the study concludes that external debt is inversely related to private investment, meaning that an increase in external debt goes a long way in reducing private investment which slows down economic growth in the country. Owing from the above, the study recommends there is the need for the government to focus more on domestic investment and lessen the concentration on private investment. In addition, the government should enforce appropriate macroeconomic policy that will foster private investment couple with an enabling environment that will attract foreign investors to invest in the country by addressing the security challenges, providing investment friendly environment, by improving regulatory framework, introduction of some legal framework which should be met to apprehend any contractor, agencies, public office holders found to have embezzle funds stipulated for any developmental project; and encourage domestic investment. Future study should be conducted on effective management of resources for achieving the desired economic growth in Nigeria.