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 561
- Downloads 33
THE IMPACT OF LIFE EXPECTANCY ON ECONOMIC GROWTH IN DEVELOPING COUNTRIES
Will the improvement of life expectancy contributes to economic growth in a country? The response to this question is essential in the debates on health policy in the world in general and in developing countries (DC) in...
A MACRO STRESS TEST MODEL OF CREDIT RISK FOR THE TURKISH BANKING SECTOR
Banking sector occupy an important position in the financial system. Consequently, in order to maintain financial stability in a country, financial system and major banks of the sector have importance. At this point, fin...
HOT AND COLD CYCLES FOR AFRICAN EMERGING SHARE IPO MARKET EVIDENCE FROM TUNISIA
This paper seeks to detect hot and cold IPO cycles in the Tunisian share market using a Markov regime switching model. Using a set of IPO activity measures (number of IPOs, level of underpricing, market conditions and du...
THE CAUSAL RELATIONSHIPS BETWEEN COMPONENTS OF CUSTOMER-BASED BRAND EQUITY FOR A DESTINATION: EVIDENCE FROM SOUTH KOREAN TOURISTS IN DANANG CITY, VIETNAM
The main purpose of this study is to examine the causal relationships between components of customer-based brand equity for a tourist destination. We have collected data from 252 South Korean tourists in Danang City and...
AN INVESTIGATION INTO THE EFFICIENCY OF MONETARY AND FISCAL POLICIES IN IRAN CASE STUDY: THE 4th ECONOMIC DEVELOPMENT PLAN
This study investigates the efficiency of the quantitative targets of monetary and fiscal policies of Iranian 4th economic development plan using dynamic simulation approach. An open macro economy model was designed and...