Domestic public debt and financial development in Sub-Saharan Africa: Is there an inverted-U relationship?

Walid Benayed and Foued Gabsi ()
Additional contact information
Foued Gabsi: Faculty of Economics and Management of Sfax, University of Sfax, Tunisia

Economics Bulletin, 2020, vol. 40, issue 1, 846-854

Abstract: This paper assesses the nonlinear effect of domestic public debt on financial development using a panel of 20 low-income Sub-Saharan African countries over the period 2000-2010. Based on the framework proposed by Lind and Mehlum (2010), our analysis confirms the existence of an inverted-U relationship between domestic public debt and bank credit to the private sector with a threshold of about 52 % of GDP. The regression results are robust across different specifications and diverse estimation techniques.

Keywords: domestic public debt; financial development; an inverted-U relationship; panel data. (search for similar items in EconPapers)
JEL-codes: H6 (search for similar items in EconPapers)
Date: 2020-03-25
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2020/Volume40/EB-20-V40-I1-P72.pdf (application/pdf)

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:ebl:ecbull:eb-19-00678

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().