External Debt, External Reserves, Debt Service Costs and Economic Growth: Implications for the Nigerian Transport Sector

The objective of the study presented in this article is to examine the relationship between external debt (EXDT), external reserves (EXRS), total debt service costs (TDS) and Nigeria’s economic growth (RGDP) and how these variables impact on the Nigerian transport economy employing profligacy theory...

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Autores principales:	Richard Osadume C., Ovuokeroye Edih University
Formato:	article
Lenguaje:	EN
Publicado:	Sciendo 2021
Materias:	external debt infrastructure development external reserves debt service costs transport sector Transportation and communications HE1-9990
Acceso en línea:	https://doaj.org/article/b2703d403b414350a20cfb2dede2b74c
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spelling	oai:doaj.org-article:b2703d403b414350a20cfb2dede2b74c2021-12-05T14:11:08ZExternal Debt, External Reserves, Debt Service Costs and Economic Growth: Implications for the Nigerian Transport Sector2336-303710.2478/logi-2021-0017https://doaj.org/article/b2703d403b414350a20cfb2dede2b74c2021-01-01T00:00:00Zhttps://doi.org/10.2478/logi-2021-0017https://doaj.org/toc/2336-3037The objective of the study presented in this article is to examine the relationship between external debt (EXDT), external reserves (EXRS), total debt service costs (TDS) and Nigeria’s economic growth (RGDP) and how these variables impact on the Nigerian transport economy employing profligacy theory. The study used secondary data for Nigeria for the period 1979 to 2019 obtained from the International Debt Office (WBG). The econometric techniques used include OLS, Granger causality and Engle-Granger cointegration at a 0.05 confidence level. The results show that EXDT has a statistically significant negative relationship with EXRS, with no statistically significant relationship existing with RGDP and TDS in the short term. All the variables showed significant cointegration over the long term, with the conclusion that the relationship between EXRS and EXDT is negatively significant in the short term, while the other variables are insignificant. The recommendations of the study include, that the government and monetary authorities should endeavour to reduce the creation of foreign debt for nonreproductive projects in key sectors due to its adverse effect on external reserves, and instead pursue aid, grants and domestic long-term loan options necessary for effective growth of the transport and other key sectors of the economy.Richard Osadume C.Ovuokeroye Edih UniversitySciendoarticleexternal debtinfrastructuredevelopmentexternal reservesdebt service coststransport sectorTransportation and communicationsHE1-9990ENLOGI, Vol 12, Iss 1, Pp 182-191 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	external debt infrastructure development external reserves debt service costs transport sector Transportation and communications HE1-9990
spellingShingle	external debt infrastructure development external reserves debt service costs transport sector Transportation and communications HE1-9990 Richard Osadume C. Ovuokeroye Edih University External Debt, External Reserves, Debt Service Costs and Economic Growth: Implications for the Nigerian Transport Sector
description	The objective of the study presented in this article is to examine the relationship between external debt (EXDT), external reserves (EXRS), total debt service costs (TDS) and Nigeria’s economic growth (RGDP) and how these variables impact on the Nigerian transport economy employing profligacy theory. The study used secondary data for Nigeria for the period 1979 to 2019 obtained from the International Debt Office (WBG). The econometric techniques used include OLS, Granger causality and Engle-Granger cointegration at a 0.05 confidence level. The results show that EXDT has a statistically significant negative relationship with EXRS, with no statistically significant relationship existing with RGDP and TDS in the short term. All the variables showed significant cointegration over the long term, with the conclusion that the relationship between EXRS and EXDT is negatively significant in the short term, while the other variables are insignificant. The recommendations of the study include, that the government and monetary authorities should endeavour to reduce the creation of foreign debt for nonreproductive projects in key sectors due to its adverse effect on external reserves, and instead pursue aid, grants and domestic long-term loan options necessary for effective growth of the transport and other key sectors of the economy.
format	article
author	Richard Osadume C. Ovuokeroye Edih University
author_facet	Richard Osadume C. Ovuokeroye Edih University
author_sort	Richard Osadume C.
title	External Debt, External Reserves, Debt Service Costs and Economic Growth: Implications for the Nigerian Transport Sector
title_short	External Debt, External Reserves, Debt Service Costs and Economic Growth: Implications for the Nigerian Transport Sector
title_full	External Debt, External Reserves, Debt Service Costs and Economic Growth: Implications for the Nigerian Transport Sector
title_fullStr	External Debt, External Reserves, Debt Service Costs and Economic Growth: Implications for the Nigerian Transport Sector
title_full_unstemmed	External Debt, External Reserves, Debt Service Costs and Economic Growth: Implications for the Nigerian Transport Sector
title_sort	external debt, external reserves, debt service costs and economic growth: implications for the nigerian transport sector
publisher	Sciendo
publishDate	2021
url	https://doaj.org/article/b2703d403b414350a20cfb2dede2b74c
work_keys_str_mv	AT richardosadumec externaldebtexternalreservesdebtservicecostsandeconomicgrowthimplicationsforthenigeriantransportsector AT ovuokeroyeedihuniversity externaldebtexternalreservesdebtservicecostsandeconomicgrowthimplicationsforthenigeriantransportsector
_version_	1718371381356265472

External Debt, External Reserves, Debt Service Costs and Economic Growth: Implications for the Nigerian Transport Sector

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