Abstract: This study investigates the relationship between economic growth, external debt stock and external debt service payments of Nigeria within the context of econometric exposition over the period 1970-2014. These variables were estimated using the vector error correction models (VECM) and Granger causality technique. The results reveals both short run and long run relationships. Findings from the results show that there exist bi-directional causality going from (i) external debt stock and economic growth (ii) external debt service payments and economic growth and (iii) unidirectional granger causality going from external debt stock and external debt service payments.
Keywords: Economic growth, External debt, Vector Error Correction, Granger Causality.
Title: Causal Nexus between External Debt and Economic Growth: The Nigerian Case
Author: Ogunlana Olarewaju Fatai
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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