Empirical Investigation of the Human Development Implementations of International Financial Institutions Loans in Nigeria

  • BOZI, Rosemary Chioma Department of Economics, Faculty of Social Sciences, Rivers State University, Port Harcourt.
  • EWUBARE, Dennis Brown Department of Economics, Faculty of Social Sciences, Rivers State University, Port Harcourt
  • EKINE, Data Irene Department of Agricultural and Applied Economics, Faculty of Agriculture, Rivers State University, Port Harcourt
Keywords: Human development, HDI, foreign institutional loans, International Finance Corporation, African Development Bank, Paris Club


This study offered empirical evidence on the contributions of foreign institutional loans to human development in Nigeria between 1981 and 2020. The specific objectives were to ascertain the effects of loans from International Finance Corporation (IFC), International Development Association (IDA), Paris Club, and African Development Bank on the Human Development Index (HDI). The data for the variables were obtained from the United Nations Development Programme Human Development Report, National Bureau of Statistics, World Development Indicators, and International Debt Statistics. The empirical investigation followed an ex post facto research design with the application of descriptive statistics, unit root and cointegration tests as well as error correction model and Granger causality tests as the data analysis techniques. The unit root test results revealed that all the variables are stationary at the first difference, which justifies the test for cointegration using the Johansen method. It was found from the cointegration test results that a long-run relationship exists among the variables in the model. The parsimonious ECM showed that IFC and African Development Bank loans have significant positive effects on HDI. This highlights the substantial contributions of the World Bank Group and African Development Bank to human capital development in Nigeria. Given the findings, this study recommends amongst others that policymakers should move towards mobilizing more loans from international finance cooperation and the African Development Bank when it comes to the issue of human development to create more opportunities for long-term improvement in HDI.


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How to Cite
Rosemary Chioma, B., Dennis Brown, E., & Data Irene, E. (2022). Empirical Investigation of the Human Development Implementations of International Financial Institutions Loans in Nigeria. GPH-International Journal of Social Science and Humanities Research, 5(01), 50-59. https://doi.org/10.5281/zenodo.6845818