scholarly journals External Debt Dynamics and Sustainable Growth in Nigeria

2021 ◽  
Vol 10 (2) ◽  
pp. 51-63
Author(s):  
Victor Chijioke Ndubuaku ◽  
Michael Ugochukwu Uche ◽  
Cynthia Chika Onwuka ◽  
Patricia Ozioma Ifeanyi
Keyword(s):  
External Debt ◽  
Sustainable Growth ◽  
Debt Dynamics

scholarly journals The Nexus among External Debt and Economic Growth: Evidence from South Asia

2021 ◽  
Author(s):  
Sasindu Wanniarachchi
Keyword(s):  
Economic Growth ◽  
South Asia ◽  
Cross Sections ◽  
Quantitative Research ◽  
Debt Crisis ◽  
External Debt ◽  
Optimal Level ◽  
Research Strategy ◽  
Sustainable Growth ◽  
Savings Rate

Over the past few years, external debt positions of South Asian economies have increased to alarming levels, indicating that those countries are more likely to be exposed to a debt crisis. Given the low domestic savings rate of these economies, they are increasingly compelled to invest significant resources in public infrastructure in order to maintain sustainable growth momentum. At the same time, those countries are invited to enrich by integrating with global synergies in the fields of maritime, trade, and financial initiatives. However, as the recent controversy over the debt-growth association is inconclusive to date; preserving the external debt exposures at an optimal level is incumbent. Consequently, this study reviews annual observations of independent cross-sections of South Asia during the period 1981-2017 in order to find the external debt-growth relationship. In addition, the quantitative research strategy used to measure the expected outcomes primarily consists of panel ARDL specifications. On aggregate levels of data, the results suggest that there is a statistically significant negative association between external debt and economic growth. Also, it has been observed that a significant nonlinear relationship exists in relation to lower-middle income countries.

Mexico debt dynamics accelerate, but are not worrying

2015 ◽  
Keyword(s):  
Public Sector ◽  
Public Debt ◽  
External Debt ◽  
Fiscal Deficits ◽  
Content Type ◽  
Debt Accumulation ◽  
Credit Line ◽  
Debt Dynamics ◽  
Global Liquidity ◽  
The Government

Subject The outlook for public debt in Mexico. Significance Total public sector debt stood at 505.9 billion dollars in May, with external debt accounting for around one third of that amount, according to the most recent Finance Ministry figures. Fiscal deficits have pushed up indebtedness in recent years, but falling costs have provided a counterweight to the debt accumulation. Impacts Only an external shock will significantly diminish Mexico's creditworthiness. Public debt should reach 50-55% of GDP when the government absorbs Pemex's pension commitments. In the case of a global liquidity crunch, Mexico could activate its IMF credit line, allowing it to borrow up to 72 billion dollars.

scholarly journals Determinants of Debt Problem in Pakistan and its Debt-servicing Capacity

1988 ◽  
Vol 27 (4II) ◽  
pp. 805-818
Author(s):  
Nadeem A. Burney
Keyword(s):  
Developing Countries ◽  
International Organizations ◽  
Average Rate ◽  
External Debt ◽  
Debt Service ◽  
Sustainable Growth ◽  
Debt Problem ◽  
Notable Feature ◽  
Outstanding Debt ◽  
Foreign Governments

In the last decade, Pakistan's external debt obligations have risen to an unprecedented level. This is despite the fact that the country had been able to borrow on concessional terms from international organizations and foreign governments unlike many other developing countries. The situation has raised concern about the viability of the strategy of excessive dependence on foreign sources and the problems it poses for sustainable growth. Between 1970 and 1980 Pakistan's external debt grew at an average rate of 11.3 percent. Althol1gh, during the Eighties it has grown at a much slower rate, i.e. 2.37 percent, but by 1986-87 the level of total external debt had reached more than 12 billion U.S. dollars. A notable feature of this change has been that since the mid-Seventies the debt service payments have increased at a much faster rate compared with the outstanding debt.

scholarly journals Assessment of Public and External Debt Sustainability Using Debt Dynamics Equation Approach: A Comparative Study of Pakistan and India

2019 ◽  
Vol 10 (1) ◽  
pp. 25-55
Author(s):  
Khurram Ejaz Chandia ◽  
Sania Riaz ◽  
Attiya Y. Javid ◽  
Muhammad Badar Iqbal ◽  
Mariam Azam ◽  
...  
Keyword(s):  
Interest Rate ◽  
Current Account ◽  
Public Debt ◽  
Current Account Deficit ◽  
External Debt ◽  
Weak Form ◽  
Current Account Balance ◽  
Debt Sustainability ◽  
Systemic Risks ◽  
Debt Dynamics

The study examines the sustainability of public and external debt burden of Pakistan and India for the period 1971–2017. The debt dynamics equation for public debt uses two components for the analysis of public debt sustainability, namely, interest rate–growth rate differential and differential of primary budget balance-to-GDP and change of reserve money-to-GDP ratio. The equation for external debt dynamics also uses two components for the assessment of external debt sustainability, namely, current account balance-to-exports ratio and differential of exports growth and interest rate. The significance of the approach used in the current study lies in the fact that in case of evaluation of countries’ debt sustainability, it is quite necessary to monitor debt trends along with emerging domestic and external vulnerabilities and systemic risks that threaten debt sustainability. This phenomenon has been captured through debt dynamics approach, which is used in the current study. The results are based on the estimation of two equations, namely, debt dynamics equation for overall public debt sustainability and debt dynamics equation for external debt sustainability. The results of the study indicate that primary budget deficit and current account deficit have played a significant role in the accumulation of public debt and external debt, respectively in Pakistan and India. The study concludes that public debt and external debt of Pakistan and India are sustainable but in a weak form.

Impacts Of Capital Flight On Economic Growth In Nigeria

2015 ◽  
Vol 3 (8) ◽  
pp. 10-46
Author(s):  
OLOYE Martins Ifedayo ◽  
Olatunji Olawale
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
External Debt ◽  
Sustainable Growth ◽  
Least Square ◽  
Capital Flight ◽  
Current Account Balance ◽  
Foreign Reserve ◽  
Ordinary Least Square ◽  
The Government

This study examines the impacts of capital flight on economic growth in Nigeria between 1980 and 2012. The study used co-integration, Ordinary Least Square (OLS) and Error Correction Mechanism (ECM) as its main estimation techniques. The evidence, however, shows that capital flight, foreign reserve, external debt, foreign direct investment and current account balance co-integrate with Gross Domestic Product (GDP) in Nigeria within the year under study. It was also discovered that capital flight had negative impact on the economy. Based on the empirical findings, it is recommended that the government should create an enabling environment for profitable investment and offer foreign investors attractive incentives as this will reduce the occurrence of capital flight from Nigeria and lead to sustainable growth and development.

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