DEBT SERVICING AND ECONOMIC GROWTH IN NIGERIA: MODERATING EFFECT OF CORRUPTION

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BAZE UNIVERSITY JOURNAL 9.pdf (13.14 MB)

Date

2022-01-01

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Department of Accounting, Nasarawa State University Keffi

Abstract

The aid of this study was to examine the effect of debt servicing on economic growth in Nigeria with corruption as a moderator. Debt servicing was proxy by foreign and domestic debt servicing, while economic growth was proxy by gross domestic product. Also, corruption was measured using the corruption perception index o f the Transparency International. This study adopted ex post facto research design and relied on documentary evidence from CBN statistical bulletin from 1990 to 2020. The study used multiple regression analysis technique for the purpose o f analysis after both time series tests such as unit root, cointegration and normality were conducted. The result o f this study showed that foreign debt servicing has significant effect on GDP, while the domestic debt servicing does not have any significant effect on GDP in Nigeria. The study also, showed that corruption as a moderator a negative indirect effect on relationship between debt servicing and economic growth in Nigeria. Based on the findings, the study concluded that debt servicing can be used as a predictor of economic growth in Nigeria. Therefore, the study recommended that Government should regularly service her debts as non-service could amount to debt covenant violation charges which could mean more cash outlay for the governmen

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Keywords

Debt Servicing, Corruption, Economic Growth, Nigeria

Citation

Adel, C., Hussain, M., Mohammed, E., & Basuony, M. (2019). Is corporate governance relevant to the quality of corporate social responsibility disclosure in large European companies? International Journal of Accounting and Information Management, 27(2), 301-332. Abdelmonem, S., & Mohamed, L. (2018). Measuring liquidity in financial markets. IMF Working Paper, 1-64, December 2002 edition. Adesola, W.A. (2009). Debt servicing and economic growth in Nigeria: An empirical investigation, Global Journal of Social Sciences, 8(2), 1-11. Afolabi, B., Laoye, A., Kolade, A. R., & Enaholo, J. (2017). The nexus between external debt and economic growth in Nigeria. British Journal of Economics, Finance and Management Sciences, 14(1), 1-17.

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https://keffi.nsuk.edu.ng/handle/20.500.14448/569

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