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Essay from the year 2019 in the subject Economics - Foreign Trade Theory, Trade Policy, grade: 3.92, , language: English, abstract: The main objective of this study is to examine the relationship between External Debt and Economic growth in the case of Nigeria. The study used annual data covering the period 1986 to 2016. The study used Augmented Dickey Fuller test to check the stationarity of the data, Johnson's Cointegration approach was employed to test the Cointegrating relationship existing among the variables in the model and Granger causality was also used to test the direction of the relationship among variables. The Vector Error Correction Model was employed to capture both short run and long run dynamics. Generally, the results reveal that External Debt has a negative impact on the economy.
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