Access the full text.
Sign up today, get DeepDyve free for 14 days.
A. Makin (2005)
Public Debt Sustainability and Its Macroeconomic Implications in ASEAN-4ASEAN Economic Bulletin, 22
S. Mustapha, A. Prizzon (2018)
Africa ’ s rising debt How to avoid a new crisis
Marta Gómez-Puig, S. Sosvilla‐Rivero, I. Martínez‐Zarzoso (2022)
On the heterogeneous link between public debt and economic growthJournal of International Financial Markets, Institutions and Money
Eric Djimeu (2018)
The impact of the Heavily Indebted Poor Countries initiative on growth and investment in AfricaWorld Development, 104
Cosimo Magazzino, F. Forte, L. Giolli (2020)
On the Italian public accounts' sustainability: A wavelet approachInternational Journal of Finance & Economics
Aaron Mehrotra, Ken Miyajima, Agustín Villar (2012)
Developments of Domestic Government Bond Markets in EMEs and Their ImplicationsBIS Papers Series
V. Teles, Caio Mussolini (2011)
Public debt and the limits of fiscal policy to increase economic growth
O. Olaoye, P. Olomola (2022)
Empirical analysis of asymmetry phenomenon in the public debt structure of Sub-Saharan Africa's five biggest economies: A Markov-Switching modelThe Journal of Economic Asymmetries
(2010)
Growth in a Time of Debt
(1990)
Human capital, fertility and economic growth
(2019)
Loan data
K. Forslund, L. Lima, U. Panizza (2011)
The determinants of the composition of public debt in developing and emerging market countriesReview of Development Finance, 1
G. Brady, Cosimo Magazzino (2017)
The Sustainability of Italian Public Debt and DeficitInternational Advances in Economic Research, 23
O. Akanbi (2015)
Sustainability of fiscal policy in an oil-rich economy: the case of NigeriaAfrican Journal of Economic and Management Studies, 6
R. Barro, Xavier Sala-i-Martin (1990)
Public Finance in Models of Economic GrowthEconomic Growth
R. Barro (1988)
Government Spending in a Simple Model of Endogeneous GrowthJournal of Political Economy, 98
G. Brady, Cosimo Magazzino (2018)
Government debt in EMU countriesThe Journal of Economic Asymmetries
Anne-Charlotte Paret (2017)
Debt sustainability in emerging market countries: Some policy guidelines from a fan-chart approachEconomic Modelling, 63
P. Romer (1989)
Endogenous Technological ChangeJournal of Political Economy, 98
F. Forte, Cosimo Magazzino (2016)
Fiscal policies in EMU countries: strategies and empirical evidenceJournal of International Trade Law and Policy, 15
H. Bohn (2005)
The sustainability of fiscal policy in the United States
Juan Pradelli, A. Presbitero, G. Bua (2014)
Domestic Public Debt in Low-Income Countries: Trends and StructureWorld Bank Policy Research Working Paper Series
O. Olaoye, Oluwatosin Aderajo (2019)
Institutions and economic growth in ECOWAS: an investigation into the hierarchy of institution hypothesis (HIH)International Journal of Social Economics
E. Baldacci, Manmohan Kumar (2010)
Fiscal Deficits, Public Debt, and Sovereign Bond YieldsInternational Monetary Fund (IMF) Research Paper Series
E. Bacchiocchi, A. Missale (2015)
Multilateral indexed loans and debt sustainabilityOxford Review of Economic Policy, 31
Ruohan Wang, Yi Xue, Wenping Zheng (2021)
Does high external debt predict lower economic growth? Role of sovereign spreads and institutional qualityEconomic Modelling, 103
António Afonso (2004)
Fiscal Sustainability: The Unpleasant European Case
O. Olaoye, Ukafor Okorie, O. Eluwole, M. Fawwad (2020)
Government spending shocks and economic growth: additional evidence from cyclical behavior of fiscal policyJournal of Economic and Administrative Sciences
A. Baharumshah, Siew-Voon Soon, Evan Lau (2017)
Fiscal sustainability in an emerging market economy: When does public debt turn bad?Journal of Policy Modeling, 39
K. Makun (2021)
External debt and economic growth in Pacific Island countries: A linear and nonlinear analysis of Fiji IslandsThe Journal of Economic Asymmetries
Jaejoon Woo, Manmohan Kumar (2010)
Public Debt and GrowthPolitical Economy: Budget
Journal of Econometrics, 87
O. Olaoye, O. Eluwole, Aziz Ayesha, O. Afolabi (2020)
Government spending and economic growth in ECOWAS: An asymmetric analysisThe journal of economic asymmetries, 22
Cosimo Magazzino, M. Mutascu (2019)
A wavelet analysis of Italian fiscal sustainabilityJournal of Economic Structures, 8
Stephen Cecchetti, M. Mohanty, Fabrizio Zampolli (2011)
The Real Effects of DebtPolitical Economy: Budget
Cosimo Magazzino, G. Brady, F. Forte (2019)
A panel data analysis of the fiscal sustainability of G-7 countriesThe Journal of Economic Asymmetries
D. Rodrik (2009)
The Real Exchange Rate and Economic GrowthBrookings Papers on Economic Activity, 2008
(2018)
Staff report for the 2018 Article IV consultation—debt sustainability analysis
G. Brady, Cosimo Magazzino (2019)
The sustainability of Italian fiscal policy: myth or reality?Economic Research-Ekonomska Istraživanja
R. Blundell, Stephen Bond (1998)
Initial Conditions and Moment Restrictions in Dynamic Panel Data Models
Michael Olabisi, H. Stein (2015)
Sovereign bond issues: Do African countries pay more to borrow?Journal of African Trade, 2
Fiscal Policy, Public Debt and Monetary Policy in Emerging Market Economies, 67
In light of the recent calls for another round of debt relief for African countries, by African finance ministers and governments, the aim of the study is twofold. First, the study examined the effect of public debt on macroeconomic performance. Two, the study also examined whether previous debt relief has impacted positively on sub-Saharan African economies.Design/methodology/approachThe study adopts the two-step system GMM that accounts for potential endogeneity and feedback effect in dynamic panel models. As robustness, the study performs the two-stage least square (2SLS) estimation method.FindingsThe study reveals that previous debt relief programmes only had a marginal effect on economic growth in the region. The study found that corruption impacts negatively on the effectiveness of debt relief to achieve the desired economic outcomes. The study also found that sub-Saharan African economies seem to have shifted away from traditional concessional sources of financing towards market-based lenders dominated by China.Originality/valueThe study adds to the growing evidence in the public debt literature by looking at the separate impact of domestic and foreign debts on macroeconomic indicators of economic growth, inflation, unemployment and exchange rate. The study also controlled for previous debt relief in light of the call for another round of debt relief.Graphical Abstract
African Journal of Economic and Management Studies – Emerald Publishing
Published: Feb 24, 2023
Keywords: Public debt; Debt relief; GMM; Corruption; E6; H5; H6
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.