Public debt, institutional quality and growth in sub-Saharan Africa: a threshold analysis

2021 ◽  
pp. 1-23
Author(s):  
Laurent Kemoe ◽  
Emmanuel K.K. Lartey
Keyword(s):  
Public Debt ◽  
Institutional Quality ◽  
Sub Saharan Africa ◽  
Threshold Analysis ◽  
Sub Saharan

scholarly journals Relationship between Public Debt Burden and Health Expenditure in Sub-Saharan African Countries: The Role of Institutional Quality

2020 ◽  
Vol 6 (2) ◽  
Author(s):  
Rusmawati Said ◽  
Abdullahi Sani Morai
Keyword(s):  
Public Debt ◽  
Health Expenditure ◽  
Institutional Quality ◽  
Sub Saharan Africa ◽  
African Countries ◽  
The Public ◽  
Debt Burden ◽  
Sub Saharan ◽  
The Relationship

The historically lower level of public health expenditure of sub-Saharan African (SSA) countries could be partly explained by the mounting debt burden of this region. This consumes a sizable proportion of their domestic resources to debt servicing and potentially decreases their overall budgetary allocations to various sectors in the economy and health expenditure in particular. Using the Generalized Method of Moments (GMM) approach on a sample of 43 sub-Saharan African countries, we examined the relationship between the public debt burden and health expenditure highlighting the role of institutional quality for the period 2000 – 2014. The empirical result confirms that the relationship between public debt burden and health expenditure in sub-Saharan Africa is negative. Interestingly, however, the marginal effect of the relationship between the public debt burden and health expenditure has shown that such a negative relationship turns out to be positive when the quality of the institutions is at maximum. This suggests that the relationship between the public debt burden and health expenditure in sub-Saharan Africa is a function of institutional quality.  Therefore, to minimize the negative impact of public debt on health expenditure in sub-Saharan Africa, governments should take determine stand to minimize its debt accumulation and intensify efforts toward the improvement of institutional quality in the region comprehensively.

scholarly journals THE ROLE OF FINANCIAL DEVELOPMENT AND INSTITUTIONAL QUALITY ON ENVIRONMENTAL SUSTAINABILITY IN SUB-SAHARAN AFRICAN COUNTRIES

2018 ◽  
Vol 6 (9) ◽  
pp. 156-177
Author(s):  
Aliyu Alhaji Jibrilla
Keyword(s):  
Financial Development ◽  
Environmental Sustainability ◽  
Carbon Dioxide Emissions ◽  
Early Stage ◽  
Institutional Quality ◽  
Environmental Conservation ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Pooled Mean Group ◽  
Sub Saharan

This study addresses the question of financial development and institutional quality influence on the environmental sustainability of some 13 countries from the sub-Saharan Africa. Relying upon pooled mean group (PMG) for panel data, we provide evidence which suggest that both financial development and institutional quality are statistically significant determinants of per capita carbon dioxide emissions in the region. More specifically, we found that without healthy institutions and sound financial system sub-Saharan African countries might not avoid environmental degradation experienced by advanced nations during their early stage of economic progress. Our results also support the EKC hypothesis in the region.  In addition, the paper also shows that more openness to FDI inflows is good for the environment across the SSA. These findings suggest the need for institutional and financial service reform that supports robust environmental conservation.

How does foreign direct investment affect growth in sub-Saharan Africa? New evidence from threshold analysis

2020 ◽  
Vol 47 (1) ◽  
pp. 149-181 ◽  
Author(s):  
Oyakhilome Ibhagui
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Population Growth ◽  
Direct Investment ◽  
Sub Saharan Africa ◽  
Threshold Analysis ◽  
Content Type ◽  
Threshold Levels ◽  
Sub Saharan ◽  
Ssa Countries

PurposeThe threshold regression framework is used to examine the effect of foreign direct investment on growth in Sub-Saharan Africa (SSA). The growth literature is awash with divergent evidence on the role of foreign direct investment (FDI) on economic growth. Although the FDI–growth nexus has been studied in diverse ways, very few studies have examined the relationship within the framework of threshold analysis. Furthermore, even where this framework has been adopted, none of the previous studies has comprehensively examined the FDI–growth nexus in the broader SSA. In this paper, within the standard panel and threshold regression framework, the problem of determining the growth impact of FDI is revisited.Design/methodology/approachSix variables are used as thresholds – inflation, initial income, population growth, trade openness, financial market development and human capital, and the analysis is based on a large panel data set that comprises 45 SSA countries for the years 1985–2013.FindingsThe results of this study show that the direct impact of FDI on growth is largely ambiguous and inconsistent. However, under the threshold analysis, it is evident that FDI accelerates economic growth when SSA countries have achieved certain threshold levels of inflation, population growth and financial markets development. This evidence is largely invariant qualitatively and is robust to different empirical specifications. FDI enhances growth in SSA when inflation and private sector credit are below their threshold levels while human capital and population growth are above their threshold levels.Originality/valueThe contribution of this paper is twofold. First, the paper streamlines the threshold analysis of FDI–growth nexus to focus on countries in SSA – previous studies on FDI-growth nexus in SSA are country-specific and time series–based (see Tshepo, 2014; Raheem and Oyınlola, 2013 and Bende-Nabende, 2002). This paper provides a panel analysis and considers a broader set of up to 45 SSA countries. Such a broad set of SSA countries had never been considered in the literature. Second, the paper expands on available threshold variables to include two new important macroeconomic variables, population growth and inflation which, though are important absorptive capacities but, until now, had not been used as thresholds in the FDI–growth literature. The rationale for including these variables as thresholds stems from the evidence of an empirical relationship between population growth and economic growth, see Darrat and Al-Yousif (1999), and between inflation and economic growth, see Kremer et al. (2013).

scholarly journals Mobile phones, institutional quality and entrepreneurship in Sub-Saharan Africa

2018 ◽  
Vol 131 ◽  
pp. 183-203 ◽  
Author(s):  
Simplice A. Asongu ◽  
Jacinta C. Nwachukwu ◽  
Stella-Maris I. Orim
Keyword(s):  
Mobile Phones ◽  
Institutional Quality ◽  
Sub Saharan Africa ◽  
Sub Saharan

Examining the interactive growth effect of development aid and institutional quality in Sub-Saharan Africa

2020 ◽  
Vol 12 (4) ◽  
pp. 361-376
Author(s):  
Mehmet Balcilar ◽  
Berkan Tokar ◽  
Olasehinde-Williams Godwin
Keyword(s):  
Institutional Quality ◽  
Development Aid ◽  
Sub Saharan Africa ◽  
Growth Effect ◽  
Sub Saharan
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