By: Glory C. Agu, Kelechi Clara Anyanwu, Okoro Mgbodichima, Mathew Enyinnaya, Precious I. Ohalete
Pages: 84–102, Volume: 2, Number: 1
Published by: AEFUNAI Journal of Economics, Finance and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike, 1/1/2025, 2025
ISSN (Electronic): 2536-6742
DOI:
External Debt, Capital Flight, And Nigeria's Economy
Abstract:
This research explores the nexus between external debt and capital flight in Nigeria. The study utilizes a vector autoregression (VAR) framework to determine if borrowed funds are leaking out of the economy. The results show a positive relationship between external borrowing and capital flight, suggesting that a significant portion of debt is not utilized for domestic investment. The study suggests stricter oversight of international financial transactions to curb illicit financial flows.
Keywords: External debt, Capital flight, Macroeconomic performance, Debt servicing, Nigeria
How to Cite
Agu, G. C., Anyanwu, K. C., Mgbodichima, O., Enyinnaya, M., & Ohalete, P. I. (2025). External Debt, Capital Flight, And Nigeria’s Economy. AEFUNAI Journal of Economics, Finance and Development Studies (AEFUNAI-JEFDS), Vol. 2(1), 84–102.
Creative Commons Attribution 4.0 International License (CC BY 4.0)
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