Abstract: This study empirically investigate the impact of external debt on economic growth using annual time series data from 1970-2015 and linear regression model for the estimation. The results show a positive and significant external debt impact on economic growth. In addition, further inquiries on the extent of structural adjustment programmes on growth show that growth in RGDP increased by 28.3% in the post-SAP era more than the pre-SAP era. The study, therefore, concludes that external debt has made positive contribution to the economic growth within the periods of the study in Nigeria. Hence, from the study’s findings, we recommend that external debt should only be sourced for high priority projects like infrastructural development to driven the private sector economic economy. More so, the Nigerian government should also create good business environment that can promote investors confidence to attract new business opportunities for more domestic and Foreign investment inflows to the country.
Charles O. Manasseh, Felicia C. Abada, Jonathan E. Ogbuabor, Aja Ebeke Egele, Chinasa E. Urama, Okoro E.U. Okoro and Josaphat U.J. Onwumere, 2019. External Debt and Economic Growth: An Impact Analysis. The Social Sciences, 14: 55-67.