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: C10 F34 O40 O55 (search for similar items in EconPapers)
Pages: 53 pages
Date: 1999
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Citations: View citations in EconPapers (24)

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

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