External Debt and Economic Growth in Sub-Saharan African Countries: An Econometric Study
| dc.contributor.author | lyoha, Milton A. | |
| dc.date.available | 2019-02-16T16:57:02Z | |
| dc.date.issued | 1999-03 | |
| dc.description | HJ 8826 .I96 1999 | en_US |
| dc.description.abstract | This econometric study takes a sumulation approach to investigate the impact of external debt on economic growth in sub-Saharan African countries using a small macroeconometric model estimated for 1970-1994. An important finding was the significance of debt overhang variables in the investment equation, suggesting that mounting external debt depresses investment through both a “disincentive” effect and a “crowding out” effect. Policy simulation was undertaken to investigate the impact of alternative debt stock reduction scenarios (debt reduction packages of 5%, l0%, 20% and 50%), effective in 1986, on investment and economic growth in the subsequent years. It was found that debt stock reduction would have significantly increased investment and growth performance. A 20% debt stock reduction would, on average, have increased investment by 18% and increased GDP growth by 1% during the 1987-1994 period. Thus, the results demonstrate that debt forgiveness could provide a much needed stimulus to investment recovery and economic growth in sub-Saharan Africa. | en_US |
| dc.description.sponsorship | AERC | en_US |
| dc.identifier.uri | https://publication.aercafricalibrary.org/handle/123456789/36 | |
| dc.publisher | The African Economic Research Consortium | en_US |
| dc.subject | External Debts | en_US |
| dc.subject | Sub-Saharan Africa | en_US |
| dc.subject | Econometrics Models | en_US |
| dc.title | External Debt and Economic Growth in Sub-Saharan African Countries: An Econometric Study | en_US |
| dc.title.alternative | Research Publication 90 | en_US |
| dc.type | Article | en_US |