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Financing Africa’s DevelopmentExternal Debt, Governance, and Economic Growth: The African Case

Financing Africa’s Development: External Debt, Governance, and Economic Growth: The African Case [This paper is motivated by the Direct Effect of Debt Hypothesis (DEDH), and based on empirical facts, develops a theoretical model that explores the impact of external debt on economic growth by taking into consideration exports and the role of institutions or quality of governance. Using country averages from 2005 to 2017 and data set for 32 SSA countries, OLS technique is used to estimate cross-sectional effect of external debt on governance and economic growth. The findings indicate that exports and quality of governance stimulate output positively, while external debt burden has adverse effect on economic growth. ] http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png

Financing Africa’s DevelopmentExternal Debt, Governance, and Economic Growth: The African Case

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Publisher
Springer International Publishing
Copyright
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2020
ISBN
978-3-030-46481-3
Pages
85 –97
DOI
10.1007/978-3-030-46482-0_6
Publisher site
See Chapter on Publisher Site

Abstract

[This paper is motivated by the Direct Effect of Debt Hypothesis (DEDH), and based on empirical facts, develops a theoretical model that explores the impact of external debt on economic growth by taking into consideration exports and the role of institutions or quality of governance. Using country averages from 2005 to 2017 and data set for 32 SSA countries, OLS technique is used to estimate cross-sectional effect of external debt on governance and economic growth. The findings indicate that exports and quality of governance stimulate output positively, while external debt burden has adverse effect on economic growth. ]

Published: Jun 25, 2020

Keywords: External debt; Governance; Economic growth; SSA countries; H630; O430

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