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The Upshot of External Debt on Economic Growth in West African Countries: A Panel Data Approach

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  • Adeniji, Sesan

Abstract

This study investigates the upshot of external debt on economic growth in West African countries using panel data techniques of analysis for a period of 1971 -2012. The aftermath of the analysis shows a negative and significant relationship between external debt and economic growth in the economies of the countries under consideration. This is in no way different from what economic theories preached and the outcome of some previous research work on the issue. Therefore, we suggest that government should endeavor to put-in necessary measure to ensure judicious use of fund obtain from abroad for the purpose which they are acquired considering the highest priority of the project and also develop effective and efficient external debt management strategies that will favour timely repayment or liquidation of the debt to avoid debt overhanging.

Suggested Citation

  • Adeniji, Sesan, 2013. "The Upshot of External Debt on Economic Growth in West African Countries: A Panel Data Approach," MPRA Paper 52555, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:52555
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    References listed on IDEAS

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    More about this item

    Keywords

    Keywords: External Debt; Economic Growth and Panel data.;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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