International records / OpenAlex research

Non-linear Relation between External Debt and Economic Growth in Nigeria: Does the Investment Channel Matter?

Large external debt stock has been identified as one of the most important factors which have restricted the development of many poor countries. The consensus in the literature remains that external debt promotes growth to the extent that a country does not exceed its debt carrying capacity. Otherwise, additional debt accumulation would serve as a tax on future investment returns capable of creating disincentive to invest in the highly indebted countries. In the light of these arguments, this study investigated the possible role of domestic investment in the non-linear relation between externa…