Amakom Uzochukwu (African Institute for Applied Economics, Enugu, Nigeria)
Abstract
Reasonable levels of external debt that would help finance productive investment are expected to enhance economic growth and improve poverty status though beyond certain levels an additional indebtedness might hinder growth and consequently affect poverty negatively. To investigate the effect of debt [domestic and external] and growth on poverty using the per capita income approach, the study augments a growth and debt specifications based on conditional convergence by adding several debt and growth variables. Empirical evidence show that population, domestic debt, external debt, debt service rates are all on the high side while investment rates, school enrolment rates [secondary school], Terms of Trade and Fiscal Balance are on the low side. Evidence from the study suggests that these variables have played very crucial role towards poverty escalation in Nigeria.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by EconWPA in its series Public Economics with number
0508014.