Interaction between External Debt and Economic Growth in Nigeria: A VAR Model Approach |
Author(s): |
| Amaefula C.G , Federal university otuoke |
Keywords: |
| External debt, economic growth, cointegration, VAR model and Granger causality |
Abstract |
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The paper considered the interaction between external debt and Nigeria’s economic growth. The time series data sets cover the period of 1981 to 2018. Applying cointegration test, vector autoregressive (VAR) model and Granger causality, the results revealed that there is no long-run relationship between external debt and economic growth in Nigeria. The estimated VAR model parameters showed that the two variables under study have no significant interaction in the short-run. The result also indicates that there is no Granger causality relationship between the two variables up to the 6th lag. Hence, it becomes expedient for the government to review its policies on external borrowing and servicing so as to enhance economic growth. |
Other Details |
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Paper ID: IJSRDV7I120541 Published in: Volume : 7, Issue : 12 Publication Date: 01/03/2020 Page(s): 623-628 |
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