Capital Market Performance and Sectoral Output Growth in Nigeria

ABSTRACT
Aims: This paper focuses on the issue of the impact of debt financing on economic growth,
especially the long-term economic growth in Nigeria
Duration of Study: The public debt and economic growth evolution between 2009 and 2020
Methodology: In order to answer our research question, we adopt a positivist epistemology with a
deductive methodological approach through an econometric modeling. An autoregressive model
“VAR” was applied using the stationarity and co-integration’s tests and causality’s tests.
Results: The findings revealed a significant positive relationship between public debt and economic
growth in the period between 2009 and 2020. This is due to the good management strategy of the
public debt and the good institutional governance. However, the level of the external public debt
service has no significant impact on real growth rate.
Keywords: Finance; debt management; economic growth; investment; VAR model; Nigerian