Economic Development and Foreign Policy in Nigeria
Canadian Journal of African Studies
This article examined the economic implications of foreign loans on real sector development in Nigeria. Specifically, the work sought to assess the relationship that exist between loans granted by various countries and clubs and real sector development in Nigeria, from 1970 to 2012. The desk, investigatory, descriptive and analytical research designs were used. Relationship analysis of the various sources of foreign loans and the real sector development variables such as manufacturing outputs,
... facturing outputs, growth rate of gross domestic products and unemployment rate were made using the multiple regression models. It was discovered that significant relationships exist between the growth rate of gross domestic product, manufacturing output, and loans from Paris and London clubs of creditors, among others. In other words, these loans contributed significantly to the development of these subsectors irrespective of the observed marginal relationship between unemployment rates and loans from Paris club. It was concluded that judicious use of foreign loans is necessary in the realization of the development and growth of the economy specifically the real sector emphasized in this article. On the basis of this, this article recommends among others that foreign loans should be used mostly in productive assets to inspire real sector development and growth.