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This paper examines foreign borrowing and private-sector investment in an emerging sub-Saharan economy with particular reference to Nigeria. The focus is on the impact of foreign borrowing on private-sector investment. The Ordinary Least square (OLS) technique was adopted with the application of times series data on private investment, Government investment, inflation, export to income ratio, total debt service to export, terms of trade, economic growth and lending rates. The result of the study is respectable and satisfactory. This study maintains that satisfactory debt management policy should be put in place so as to determine how foreign borrowing can best be used to encourage economic growth and industrialization among others. Where this is treated with a wave of the hands, economic strangulation then becomes imminent in the economy. |
