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
- EP ID EP1775
- DOI -
- Views 503
- Downloads 33
THE CONSUMER LOAN’S PAYMENT DEFAULT PREDICTIVE MODEL: AN APPLICATION IN A TUNISIAN COMMERCIAL BANK
For the alarming growth in consumer credit in recent years, consumer credit scoring is the term used to describe methods of classifying credits? applicants as `good? and `bad? risk classes.. In the current paper, we use...
A COMPARATIVE STUDY OF THE STRUCTURE OF SUPERVISING THE FINANCIAL MARKETS IN IRAN AND THE SELECTED COUNTRIES
Financial markets are the most important sectors of each country?s economy. Having the desired economic growth rate will be impossible without an efficient institution. The most basic interaction efficiency and proper fu...
FINANCIAL REPORTS QUALITY AND CORPORATE SOCIAL RESPONSIBILITY
This study explores the correlation between CSR and the quality of financial reports according to Stewardship Theory for 100 Best Corporate Citizens. The empirical results of the overall samples indicated that by practic...
GENDER AND SPATIAL EDUCATIONAL ATTAINMENT GAPS IN TURKEY
This paper aims to investigate differences and similarities between and among the seven regions as well as the developed and the less developed provinces in Turkey for their gender gaps in educational attainment of the l...
RELEVANCY OF BANKING SERVICES’ COSTS: THE CASE OF LESS DEVELOPED REGIONS IN JORDAN
The current study utilises the quantitative methodology research approach to achieve two objectives. These include; firstly, to identify the main acceptance banking services at Tafila governorate, and secondly, to identi...