Public debt accumulation in Sub-Saharan Africa: examining the role of economic expansion and institutional factors

Attahir Babaji Abubakar

Public debt accumulation in Sub-Saharan Africa: examining the role of economic expansion and institutional factors

Attahir Babaji Abubakar^*

^*Corresponding author for this work

Research output: Contribution to conference › Paper

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Abstract

This study examined the effect of economic growth and institutional factors on public debt in sub-Saharan Africa (SSA). The panel Generalised Method of Moments (GMM) model was employed to analyse data on the study variables. The results of the estimated model showed a depressing effect debt of economic growth on public debt. Further, the study discovered that although having a depressing effect, the effect of institutional factors on public debt was found to be statistically insignificant. This indicates the low-quality level of institutions in SSA. However, the interaction of institutional factors and economic growth was found to depress economic growth, signifying the need for a synergy between better institutional quality and higher economic growth in reducing the stock of public debt of SSA countries.

Original language	English
Publication status	Published - 26 Apr 2021
Externally published	Yes
Event	Scottish Economic Society Annual Economic Conference 2021 - University of Glasgow (online), Glasgow, United Kingdom Duration: 26 Apr 2021 → 28 Apr 2021 https://www.delegate-reg.co.uk/scottish-economic-society-annual-conference-2021/

Conference

Conference	Scottish Economic Society Annual Economic Conference 2021
Country/Territory	United Kingdom
City	Glasgow
Period	26/04/21 → 28/04/21
Internet address	https://www.delegate-reg.co.uk/scottish-economic-society-annual-conference-2021/

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

Keywords

public debt
economic growth
institutions
Africa

Access to Document

2021 03 09 Abubakar Debt acceptedAccepted author manuscript, 391 KB

Cite this

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title = "Public debt accumulation in Sub-Saharan Africa: examining the role of economic expansion and institutional factors",

abstract = "This study examined the effect of economic growth and institutional factors on public debt in sub-Saharan Africa (SSA). The panel Generalised Method of Moments (GMM) model was employed to analyse data on the study variables. The results of the estimated model showed a depressing effect debt of economic growth on public debt. Further, the study discovered that although having a depressing effect, the effect of institutional factors on public debt was found to be statistically insignificant. This indicates the low-quality level of institutions in SSA. However, the interaction of institutional factors and economic growth was found to depress economic growth, signifying the need for a synergy between better institutional quality and higher economic growth in reducing the stock of public debt of SSA countries.",

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note = "Scottish Economic Society Annual Economic Conference 2021 ; Conference date: 26-04-2021 Through 28-04-2021",

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TY - CONF

T1 - Public debt accumulation in Sub-Saharan Africa

T2 - Scottish Economic Society Annual Economic Conference 2021

AU - Abubakar, Attahir Babaji

PY - 2021/4/26

Y1 - 2021/4/26

N2 - This study examined the effect of economic growth and institutional factors on public debt in sub-Saharan Africa (SSA). The panel Generalised Method of Moments (GMM) model was employed to analyse data on the study variables. The results of the estimated model showed a depressing effect debt of economic growth on public debt. Further, the study discovered that although having a depressing effect, the effect of institutional factors on public debt was found to be statistically insignificant. This indicates the low-quality level of institutions in SSA. However, the interaction of institutional factors and economic growth was found to depress economic growth, signifying the need for a synergy between better institutional quality and higher economic growth in reducing the stock of public debt of SSA countries.

AB - This study examined the effect of economic growth and institutional factors on public debt in sub-Saharan Africa (SSA). The panel Generalised Method of Moments (GMM) model was employed to analyse data on the study variables. The results of the estimated model showed a depressing effect debt of economic growth on public debt. Further, the study discovered that although having a depressing effect, the effect of institutional factors on public debt was found to be statistically insignificant. This indicates the low-quality level of institutions in SSA. However, the interaction of institutional factors and economic growth was found to depress economic growth, signifying the need for a synergy between better institutional quality and higher economic growth in reducing the stock of public debt of SSA countries.

KW - public debt

KW - economic growth

KW - institutions

KW - Africa

M3 - Paper

Y2 - 26 April 2021 through 28 April 2021

ER -

Public debt accumulation in Sub-Saharan Africa: examining the role of economic expansion and institutional factors

Abstract

Conference

UN SDGs

Keywords

Access to Document

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Cite this