 Factors influencing the ability to honour debt repayment obligations by Governments in AfricaAnselm K. Abotsi International Journal of Finance & Economics, 2023, vol. 28, issue 1, 876-885 Abstract: The debt overhang in the 1990s among African countries significantly constrained fiscal space and had a devastating effect on economic development. With the current rising levels of public debt, this study seeks to explore the factors that influence the ability of governments to honour their debt repayment obligations. The study used secondary data from the World Development Indicators and World Economic Outlook. The frequency of the data is annual from 1980 to 2019. The fixed and random effects panel data estimation technique was deployed. Deploying fixed and random panel data estimation techniques while controlling for other variables, the study shows that government gross debt and total investment have a positive influence on the ability to honour debt repayment obligations while government expenditure and current account balance have a negative influence. Prudent government expenditure, financing of productive public investment, and implementation of export‐oriented policies are recommended. Date: 2023 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:wly:ijfiec:v:28:y:2023:i:1:p:876-885 Ordering information: This journal article can be ordered from Access Statistics for this article International Journal of Finance & Economics is currently edited by Mark P. Taylor, Keith Cuthbertson and Michael P. Dooley More articles in International Journal of Finance & Economics from John Wiley & Sons, Ltd. |
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