External Debt and Economic Growth in Sub-Saharan Africa: The Role of Country-Level Governance Structures

ABSTRACT

Sub-Saharan African countries have experienced a decline in its economic growth rate due to delayed and still limited policy adjustments in the region, with a consequent rise in public debt and deteriorating international reserves. External debt and governance have been argued to impact a country’s economic growth. The study assessed the role of country-level governance structures in the relationship between external debt and economic growth using a panel of 38 Sub-Saharan African countries for the period 1996-2016. The study used Arrelano and Bond General Method of Moment dynamic panel estimation technique. The results indicate that country-level governance structures improve the utilization of external debt to boost economic growth in Sub-Saharan African countries. The study concludes that strong country-level governance structures (rule of law, voice and accountability, political stability and absence of violence/terrorism, regulatory quality, government effectiveness and control of corruption) would ensure efficient utilization of external debt for the purpose of increasing economic growth in Sub-Saharan African countries

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APA

ASANTE, E (2021). External Debt and Economic Growth in Sub-Saharan Africa: The Role of Country-Level Governance Structures. Afribary. Retrieved from https://afribary.com/works/external-debt-and-economic-growth-in-sub-saharan-africa-the-role-of-country-level-governance-structures

MLA 8th

ASANTE, EVA "External Debt and Economic Growth in Sub-Saharan Africa: The Role of Country-Level Governance Structures" Afribary. Afribary, 14 Mar. 2021, https://afribary.com/works/external-debt-and-economic-growth-in-sub-saharan-africa-the-role-of-country-level-governance-structures. Accessed 22 Dec. 2024.

MLA7

ASANTE, EVA . "External Debt and Economic Growth in Sub-Saharan Africa: The Role of Country-Level Governance Structures". Afribary, Afribary, 14 Mar. 2021. Web. 22 Dec. 2024. < https://afribary.com/works/external-debt-and-economic-growth-in-sub-saharan-africa-the-role-of-country-level-governance-structures >.

Chicago

ASANTE, EVA . "External Debt and Economic Growth in Sub-Saharan Africa: The Role of Country-Level Governance Structures" Afribary (2021). Accessed December 22, 2024. https://afribary.com/works/external-debt-and-economic-growth-in-sub-saharan-africa-the-role-of-country-level-governance-structures