Abstract
The volatility in crude oil price in the global market has continuously heightened fiscal deficits in Nigeria, a net exporter of crude oil. Consequently, successive governments have often resorted to external borrowing to augment the available fiscal revenue. This has implications for economic growth. Therefore, this study evaluated the growth effect of external debt and accounted for structural break in the external debt-growth nexus in Nigeria. Annual data spanning 1981-2020 were sourced from global databases and analysed using the dynamic ordinary least square (DOLS) estimator. The result showed that external debt has growth-inhibiting effects on the Nigerian economy and that structural break matter in the analysis of the growth effect of external debt in Nigeria. The results imply that Nigeria needs to lower its external debt due to the high cost of debt servicing that accompany such debt while also improving the revenue-generating ventures in the country.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
