The Effect of Foreign Debt on Economic Growth in Sub-Saharan African Sub-Regions

Arsène Aurelien NJAMEN Kengdo, Luc NEMBOT Ndeffo and Désiré Avom
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Arsène Aurelien NJAMEN Kengdo: University of Dschang, Faculty of Economics and Management/CERME, Dschang, Cameroon
Luc NEMBOT Ndeffo: University of Dschang, Faculty of Economics and Management/CERME, Dschang, Cameroon
Désiré Avom: University of Dschang, Faculty of Economics and Management/CERME, Dschang, Cameroon

Economics and Applied Informatics, 2020, issue 1, 109-114

Abstract: The main objective of this paper is to verify the effect of foreign debt on economic growth in sub-Saharan African sub-regions from 1980 to 2017. The paper applies the Generalized Method of Moments (GMM) with robust standard deviations using the Lewbel’s estimator (2012). Results indicate that foreign debt significantly enhances growth in four zones (SADC, EAC, CEMAC and ECOWAS) with different bearable thresholds. This seems to suggest that creditors may be aware that countries do not exceed their bearable threshold at least at regional level.

Keywords: Foreign debt; Lewbel’s estimator (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ddj:fseeai:y:2020:i:1:p:109-114

DOI: 10.35219/eai1584040988

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