Debt-output gap nexus in Nigeria: Does inflationary pressure matter?
Abstract. The study examined the impact of external debt on economic growth in Nigeria using Extended Hausman Rodrick Valesco growth diagnostic framework and Three Gap Model. Annual time series data sourced from the Central Bank of Nigeria statistical bulletin between 1981-2018 was regressed using the Augmented Dickey Fuller test (ADF) to check the stationary properties of the series, and the Engel-Granger Co-integration test to estimate the long-run relationship of the variables. The results show that external debt had negative impact on the Nigerian economy.
Keywords. External debt, Economic growth, Economic development, Johansen Cointegration, Time series models, Nigeria.JEL. F34, F43, F63, C01.
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