The impact of foreign debt and government debt on economic growth in South Africa

Lerato Mothibi ()
Additional contact information
Lerato Mothibi: North West University

No 9912015, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: Debt management has always been a major concern for many developing countries. South Africa?s foreign debt was reported to have reached its highest in 2017, where debt levels reached 48.8 percent of gross domestic product. At economically sustainable levels, borrowing in itself ought not to be an issue, however it is rather unfortunate that most sub-Saharan nations including South Africa have accumulated high, unsustainable amounts of debt, which may have constrained the progression of economic growth and development. Making use of the auto regressive distributive lag model (ARDL), this study examines the relationship between foreign debt and government debt on economic growth in South Africa from 1980 to 2018. The findings of the study reveal that sound debt management may lead to economic prosperity.

Keywords: South; AfricaGovernment; debtForeign; debtEconomic; growth (search for similar items in EconPapers)
JEL-codes: A10 B26 C01 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2019-10
New Economics Papers: this item is included in nep-gro
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Proceedings of the Proceedings of the 52nd International Academic Conference, Barcelona, Oct 2019, pages 324-339

Downloads: (external link)
https://iises.net/proceedings/international-academ ... 99&iid=046&rid=12015 First version, 2019

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sek:iacpro:9912015

Access Statistics for this paper

More papers in Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences
Bibliographic data for series maintained by Klara Cermakova ().