Using an empirical model linking public debt to public investment, this study uses annual data from 1970-2010 and employs panel fixed-effects approach to estimate the effect of external and public debt, as a share of Gross Domestic Product (GDP), on public investment in East Africa Community (EAC). Levin-Lin-Chu test (LLC) and Engle-Granger approach were used to investigate the properties of the data with respect to Unit roots and Cointegration respectively. The Hausman specification test was used to select the panel fixed-effects model. The findings suggest that public debt negatively affects Public investments in EAC and that higher debt service crowds-out public sector spending.
Mose, N. & Ochieng, J (2022). Does Public Debt Crowd-Out Public Investment In East Africa Community?. Afribary. Retrieved from https://afribary.com/works/does-public-debt-crowd-out-public-investment-in-east-africa-community-researchjournali-s-journal-of-economics
Mose, Naftaly, and James Ochieng "Does Public Debt Crowd-Out Public Investment In East Africa Community?" Afribary. Afribary, 03 Oct. 2022, https://afribary.com/works/does-public-debt-crowd-out-public-investment-in-east-africa-community-researchjournali-s-journal-of-economics. Accessed 18 May. 2024.
Mose, Naftaly, and James Ochieng . "Does Public Debt Crowd-Out Public Investment In East Africa Community?". Afribary, Afribary, 03 Oct. 2022. Web. 18 May. 2024. < https://afribary.com/works/does-public-debt-crowd-out-public-investment-in-east-africa-community-researchjournali-s-journal-of-economics >.
Mose, Naftaly and Ochieng, James . "Does Public Debt Crowd-Out Public Investment In East Africa Community?" Afribary (2022). Accessed May 18, 2024. https://afribary.com/works/does-public-debt-crowd-out-public-investment-in-east-africa-community-researchjournali-s-journal-of-economics