Relationship between Foreign Loans and Economic Growth in Nigeri

  • Lawal Babatunde Akeem McPherson University, Ogun State
  • Dada John McPherson University, Ogun State
  • Ajose Kehinde McPherson University, Ogun State
  • Aina Grace McPherson University, Ogun State
DOI: https://doi.org/10.53555/bm.v3i2.1255
Keywords: Relationship, between, Foreign, Loans, Economic, Growth, Nigeria

Abstract

The relationship between foreign loans and economic development of underdeveloped countries is still
questionable and debatable, hence the purpose of this study is to examine the relationship between
foreign loans and growth of Nigerian economy over the year for 35 years. Data’s used was obtained from
Bureau of Statistics and related journals for the period of 1980 to 2015. In order to analyze the data, both
econometric and statistical methods were used. The economic regression model of ordinary least square
(OLS) was applied in evaluating the relationship between foreign loans and economic development in
Nigeria. The result revealed that foreign loans have no significant impact on economic growth in Nigeria.
However, the study recommended that Nigerian government should promote exportation of domestic
products as a high exchange rate will make our goods more attractive in the foreign market and thus, will
increase foreign exchange earnings. Furthermore, Nigeria’s external debt should adequately keep track
of the debt payment obligations and the debt should not be allowed to pass a maximum limit so as to
avoid debt overhang.

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Author Biographies

Lawal Babatunde Akeem, McPherson University, Ogun State

Department of Accounting & Finance

Dada John, McPherson University, Ogun State

Department of Accounting & Finance

Ajose Kehinde, McPherson University, Ogun State

Department of Accounting & Finance

Aina Grace, McPherson University, Ogun State

Department of Accounting & Finance

Published
2017-02-28
How to Cite
Akeem, L. B., John, D., Kehinde, A., & Grace, A. (2017). Relationship between Foreign Loans and Economic Growth in Nigeri. IJRDO - Journal of Business Management, 3(2), 64-84. https://doi.org/10.53555/bm.v3i2.1255
Issue
Vol. 3 No. 2 (2017): IJRDO - Journal of Business Management
Section
Articles

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