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

U.S.-SINGAPORE COMMODITY TRADE AND THE J-CURVE

Limited number of studies that investigated the short-run (J-Curve) and long-run effects of currency depreciation on the trade balance of Singapore either used aggregate trade data between Singapore and rest of the world...

DETERMINANTS OF CAPITAL STRUCTURE OF BANKS: EVIDENCE FROM SUB-SAHARA AFRICA

This study seeks to examine the determinants of capital structure of banks in Sub-Sahara Africa. This study has employed the use of panel data techniques to analyze the determinants of capital structure of banks in sub-S...

MACROECONOMIC VARIABLES AND STOCK MARKET RETURNS IN GHANA: ANY CAUSAL LINK?

The purpose of the study is to examine the existence of causality between macroeconomic variables and stock returns in Ghana. The study employs monthly time series data spanning the period January 1995 to December 2010....

EXCHANGE RATE VOLATILITY AND BANK PERFORMANCE IN NIGERIA

This study investigated the impact of unstable exchange rate on bank performance in Nigeria using two proxies for bank performance, namely loan loss to total advances ratio and capital deposit ratio. Government expenditu...

The Corruption and the Quality of Auditing Standards

The paper uses cross country regression analysis on a data set consisting of one hundred thirty countries for the year 2008 to test whether better auditing standards lead to lower levels of corruption. The results are co...

Download PDF file
  • EP ID EP1775
  • DOI -
  • Views 501
  • Downloads 33

How To Cite

James Sunday Kehinde (2012). Debt and Debt Volatility: Effect on Economic Growth in Nigeria. Asian Economic and Financial Review, 2(2), 325-329. https://europub.co.uk/articles/-A-1775