Public Debt and the Crisis of Development in Nigeria Econometric Investigation

Abstract

The study examined the extent of public debt crisis and its consequences on economic development using data from Nigerian economy for the period 1970 to 2010. It employed the error correction framework and co-integration techniques to test the relationship between per-capita gross domestic product and macroeconomics variables. The test reveals that there is long relationship between dependent and the independent variables. This implies that political instability may reduce rate development and other independent variables are responsible for the underdevelopment of Nigeria. Hence, to avoid the crisis of economic development in Nigeria public debt should be reduce to a minimal level.