Debt service and information communication technology on employment and productivity: Short- and long-run implications

Abstract

Information communication technology (ICT) has been envisaged to promote sustainable growth and development in Nigeria due to its increased contribution to GDP. However, its impact on aggregate output and employment is still questionable. Likewise, the increase in Nigerian debt services has raised questions about economic sustainability. Given this, the study investigates the short- and long-run impact of ICT and debt services on employment and output using autoregressive distributed lags (ARDL). The study shows that ICT has a positive relationship with employment, and debt service negatively affects employment in the long run. In the short run, ICT is insignificant to employment, while debt service negatively affects employment. Also, ICT has a positive long-term relationship with output. Debt service has a negative relationship with productivity in the long run. In the short run, ICT has a positive relationship with productivity. Debt service is not significant with output in the short run. The result implies that ICT complements employment rather than substitutes it. Likewise, economic stability can be threatened by excessive debt service. Based on this, the study recommends policy to improve the situation.