Richard C. Osadume Edih O. University Jude O. Ikubor


The Study examined External Debt and Infrastructural Developments in Emerging economies: Evidence from Nigeria, 1979 – 2019. The objective is to examine whether there is a nexus between external debt and infrastructural developments by evaluating the relationship between both variables using available evidences from Nigeria. The balance-growth theory was employed and the sample period covered 40 years with data obtained from World Bank Group online database. The study used Robust least square regression, Autogressive Distributed lag (ARDL), and the Error Correction Model to test the variables at the 0.05 significance level. The results indicates that external debt has positive and significant effect on the dependent variable in the short-run, but shows no significant correlation with infrastructural developments proxy by capital investments in the long-run and negatively insignificant nexus with real GDP. This study concludes that while foreign debt has significant relationship with the dependent variable in the short-run, it however, has insignificant correlation with infrastructural development in the long-run; and recommends that external borrowing contracts should be based on sound credit appraisals, to finance self-liquidating priority projects.


Metrics Loading ...



External Debts
Capital Investments
Debt servicing

Ajibola, I.O., Udoette, U.S., Omotosho, B.S., and Rabia, A. M. (2015). Nonlinear adjustments between Exchange Rates and External Reserves in Nigeria: A Threshold Cointegration. CBN Journal of Applied Statistics, Vol. 6 No.1.
Ayadi, F.S. and Ayadi, F.O (2008). The Impact of External Dent on Economic Growth: A Comparative Study of Nigeria and South Africa. Journal of Sustainable Development in Africa., 10; 234-264.
Ekperiware, M. C. and Oladeji, S.I. (2012).External Debt Relief and Economic Growth in Nigeria, 1975-2005. America Journal of Economics, 2(7), August.
Elom-Obed, O.F., Odo,S.I., Elom-Obed, O.and Anoke, C.I. (2017). Public Debt and Economic Growth in Nigeria. Asian Research Journal of Arts and Social Sciences, 3(4): 1-16. DOI; 10:9734\ARJASS\2017\36095.
Essien, S. N., Ngozi, T. I., Michael, K.M., and Ogochukwu, G.O. (2016). An Empirical Analysis of the Macroeconomic Impact of Public Debt in Nigeria. CBN Journal of Applied Statistics, Vol. 7, N0.1a.
Faraji, k. and Makame, A.S. (2013). Impact of External Debt on Economic Growth: A Case Study of Tanzania. Advances in Management and Applied Economics, 3(4) 59-82.
Godfrey, K.P., and Mutuku, C.M (2013). Domestic Debt and Economic Nexus in Kenya. Current Research Journal of Economic Theory, 5(1): 1-10.
Ijirshar, V.U., Fefa, J., and Godoo, M. (2016). The Relationship between External Debts and Economic Growth in Nigeria. International Journal of Economics & Management Sciences, V6 (1). DOI 10.4172/2162-6359.1000390
Isibor, A.A., Babjide, A.A., Akinjare, V., Oladeji, T. and Osuma, G. (2018). The Effect of Public debt on Economic Growth in Nigeria: An Empirical Investigation. International Business Management, 12(6): 436-441.
Kaluluma, P. (2002). Effect of Government Debt on Interest Rates: Evidence from Causality Test in Johansen- Type Models. Cahiers de recherche from Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
Mojekwu, J. N. and Ogege , S.(2012). Nigeria Public Debt and Economic Growth: A Critical Appraisal. The Business and Management Review, 3(1), November.
Senibi, V., Oduntan, E., Uzoma, O., Senibi, E., and Akinde, O. (2016). Public Debt and External Reserves: The Nigerian Experience (1981-2013). Economic Research International. Volume 2016 |Article ID 1957017.
Zaman, R. and Arslan, M., (2014). The Role of External Debt on Economic Growth: Evidence from Pakistan Economy. Journal of Economics and Sustainable Development. Vol.5, No.24, 140
How to Cite
Osadume, Richard C., Edih O. University, and Jude O. Ikubor. 2022. “External Debt and Infrastructural Developments in Emerging Economies: Evidence from Nigeria, 1979-2019”. Studies in Business and Economics 25 (1):5-21.