On the Determinants of External Debt in Nigeria

25 Pages Posted: 7 Nov 2016

See all articles by Ibrahim Adamu

Ibrahim Adamu

University of Malaya (UM) - Faculty of Economics & Administration (FEA)

Rajah Rasiah

University of Malaya

Date Written: September 10, 2016

Abstract

This paper investigates the determinants of external debt in Nigeria from 1970 through 2013 using Autoregressive Distributed Lag (ARDL) approach. The empirical results indicate that oil price, debt service and gross domestic savings play a significant role in determining external debt in Nigeria. The study also found an evidence that the exchange rate and fiscal deficit contributes to external debt build-up. The paper advocates for reviving of non-resource tradable sectors and an appropriate fiscal policy that will curtail the high spending effect and subside unnecessary expenditures.

Suggested Citation

Adamu, Ibrahim and Rasiah, Rajah, On the Determinants of External Debt in Nigeria (September 10, 2016). Available at SSRN: https://ssrn.com/abstract=2865568 or http://dx.doi.org/10.2139/ssrn.2865568

Ibrahim Adamu (Contact Author)

University of Malaya (UM) - Faculty of Economics & Administration (FEA) ( email )

University of Malaya
Kuala Lumpur, Wilayah Persekutuan 50603
Malaysia
+60166862040 (Phone)

Rajah Rasiah

University of Malaya ( email )

University of Malaya
Faculty of Economics and Administration
Kuala Lumpur, Wilayah Persekutuan 50603
Malaysia
60379673606 (Phone)
60379673719 (Fax)

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