Research Article


DOI :10.26650/mcd2021-937042   IUP :10.26650/mcd2021-937042    Full Text (PDF)

Macroeconomic Volatility and its Significance to the Rising External Indebtedness of Nigeria

Samson Adeniyi Aladejare

The motivation of this study has been to identify the effects of the multidimensional perspectives of macroeconomic volatility on the growth of external debt in Nigeria from 1970 to 2018. Methodologically, the Auto-Regressive Distributed Lag (ARDL) model and the TodaYamamoto causality approach were adopted. For the purpose of understanding the multidimensional perspective of macroeconomic volatility, macroeconomic volatility was disaggregated into three different perspectives which are: volatility from macroeconomic outcomes, domestic sources, and external sources. Findings from the study suggest that while volatility from macroeconomic outcomes exclusively affects external debt in the long-term, effects from the three sources were very substantial in the short-term. Furthermore, the causality result indicates bidirectional nexus between volatility from macroeconomic outcomes and external debt. Also, the irregular variations in the Nigerian political space, unanticipated disease outbreaks, and the effects of the 1986 recession in the country all significantly worsened the country’s external debt situation. Thus, the study recommended amongst others that since developing countries such as Nigeria cannot do away with the demand for external debt to finance its economic growth, it is also important to count the cost such financing provides even if faster growth is actually realise.

JEL Classification : E3 , E63 , H6

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APA

Aladejare, S.A. (2021). Macroeconomic Volatility and its Significance to the Rising External Indebtedness of Nigeria. Journal of Public Finance Studies, 0(66), 1-17. https://doi.org/10.26650/mcd2021-937042


AMA

Aladejare S A. Macroeconomic Volatility and its Significance to the Rising External Indebtedness of Nigeria. Journal of Public Finance Studies. 2021;0(66):1-17. https://doi.org/10.26650/mcd2021-937042


ABNT

Aladejare, S.A. Macroeconomic Volatility and its Significance to the Rising External Indebtedness of Nigeria. Journal of Public Finance Studies, [Publisher Location], v. 0, n. 66, p. 1-17, 2021.


Chicago: Author-Date Style

Aladejare, Samson Adeniyi,. 2021. “Macroeconomic Volatility and its Significance to the Rising External Indebtedness of Nigeria.” Journal of Public Finance Studies 0, no. 66: 1-17. https://doi.org/10.26650/mcd2021-937042


Chicago: Humanities Style

Aladejare, Samson Adeniyi,. Macroeconomic Volatility and its Significance to the Rising External Indebtedness of Nigeria.” Journal of Public Finance Studies 0, no. 66 (Oct. 2021): 1-17. https://doi.org/10.26650/mcd2021-937042


Harvard: Australian Style

Aladejare, SA 2021, 'Macroeconomic Volatility and its Significance to the Rising External Indebtedness of Nigeria', Journal of Public Finance Studies, vol. 0, no. 66, pp. 1-17, viewed 19 Oct. 2021, https://doi.org/10.26650/mcd2021-937042


Harvard: Author-Date Style

Aladejare, S.A. (2021) ‘Macroeconomic Volatility and its Significance to the Rising External Indebtedness of Nigeria’, Journal of Public Finance Studies, 0(66), pp. 1-17. https://doi.org/10.26650/mcd2021-937042 (19 Oct. 2021).


MLA

Aladejare, Samson Adeniyi,. Macroeconomic Volatility and its Significance to the Rising External Indebtedness of Nigeria.” Journal of Public Finance Studies, vol. 0, no. 66, 2021, pp. 1-17. [Database Container], https://doi.org/10.26650/mcd2021-937042


Vancouver

Aladejare SA. Macroeconomic Volatility and its Significance to the Rising External Indebtedness of Nigeria. Journal of Public Finance Studies [Internet]. 19 Oct. 2021 [cited 19 Oct. 2021];0(66):1-17. Available from: https://doi.org/10.26650/mcd2021-937042 doi: 10.26650/mcd2021-937042


ISNAD

Aladejare, SamsonAdeniyi. Macroeconomic Volatility and its Significance to the Rising External Indebtedness of Nigeria”. Journal of Public Finance Studies 0/66 (Oct. 2021): 1-17. https://doi.org/10.26650/mcd2021-937042



TIMELINE


Submitted13.05.2021
Accepted29.06.2021
Published Online12.10.2021

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