External Debt and Economic Growth in Sub-SAharan African Countries: an Econometric Study

M.A. Iyoha

Working Papers from African Economic Research Consortium

Abstract: This econometric study takes a simulation approach to investigate the impact of external debt on economic growth in sub-Saharan African countries using a small macroeconomic 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.

Keywords: ECONOMETRICS; ECONOMIC GROWTH; DEBT; AFRICA (search for similar items in EconPapers)
JEL-codes: O55 C10 O40 F34 (search for similar items in EconPapers)
Date: 1999

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Persistent link: http://EconPapers.repec.org/RePEc:fth:afrirc:90

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