This paper empirically explores the effect of domestic debt, as a share of Gross Domestic Product (GDP), on economic growth in the East Africa Community (EAC) over the period 1990-2010. This study was based on the Solow growth model augmented for debt. Levin-Lin-Chu test (LLC) was used to investigate the properties of the data with respect to Unit roots. The Hausman specification test was used to select the panel fixed-effects model, which was corrected for heteroscedasticity. The results show that domestic debt has a positive significant effect on per capita GDP growth rate in the EAC. The policy implication is to promote sustainable levels of domestic borrowing to enhance growth.
Mose, N. & Ochieng, J (2022). EFFECT OF DOMESTIC DEBT ON ECONOMIC GROWTH IN THE EAST AFRICAN COMMUNITY. Afribary. Retrieved from https://afribary.com/works/effect-of-domestic-debt-on-economic-growth-in-the-east-african-community
Mose, Naftaly, and James Ochieng "EFFECT OF DOMESTIC DEBT ON ECONOMIC GROWTH IN THE EAST AFRICAN COMMUNITY" Afribary. Afribary, 03 Oct. 2022, https://afribary.com/works/effect-of-domestic-debt-on-economic-growth-in-the-east-african-community. Accessed 18 May. 2024.
Mose, Naftaly, and James Ochieng . "EFFECT OF DOMESTIC DEBT ON ECONOMIC GROWTH IN THE EAST AFRICAN COMMUNITY". Afribary, Afribary, 03 Oct. 2022. Web. 18 May. 2024. < https://afribary.com/works/effect-of-domestic-debt-on-economic-growth-in-the-east-african-community >.
Mose, Naftaly and Ochieng, James . "EFFECT OF DOMESTIC DEBT ON ECONOMIC GROWTH IN THE EAST AFRICAN COMMUNITY" Afribary (2022). Accessed May 18, 2024. https://afribary.com/works/effect-of-domestic-debt-on-economic-growth-in-the-east-african-community