Authors : Isibor Areghan Akhanolu, A.A. Babajide, Akinjare Victoria, Oladeji Tolulope and Osuma Godswill
Abstract: Every government borrows either from within its territory or from abroad to finance development projects that would impact her economy. This study thus, focuses on the Nigerian government’s debt and its impact on economic growth from 1982-2017 using the two-stage least square regression. For the first equation, both internal and external debt and their lags were regressed against GDP, the result showed that external negatively impacts the economy while internal debt positively does the same. For the second equation, GDP, total savings deposits in the Nigerian deposit money banks and capital expenditure were regressed against internal debt, the result showed that all the variables have significant relationship with internal debt. The study thus, recommended that first; Corruption of borrowed funds should be tackled at all cost and also, government should minimize external borrowing, since, it impacts the economy negatively.
Isibor Areghan Akhanolu, A.A. Babajide, Akinjare Victoria, Oladeji Tolulope and Osuma Godswill, 2018. The Effect of Public Debt on Economic Growth in Nigeria: An Empirical Investigation. International Business Management, 12: 436-441.