Debt Sustainability in Developing Economies: Evidence from Sub-Sahara Africa
Journal Title: International Journal of Applied Research in Management and Economics - Year 2022, Vol 5, Issue 2
Abstract
In this study, we assess the debt sustainability of emerging economies in Sub-Saharan Africa. We specify a dynamic panel threshold to estimate the debt threshold for primary surplus and economic growth. The results reveal a non-linear threshold effect. First, with a threshold value of 17.95%, the primary surplus has a strong positive relationship with the debt-to-GDP ratio. Second, economic growth is maintained when the debt-to-GDP ratio is about 52%. The study recommends that governments in SSA should make conscious efforts to restore fiscal discipline that will keep the debt burden at a rate reasonable enough to sustain and avoid debt overhang problems.
Authors and Affiliations
Jephthah Osei,
Keywords
Related Articles
- EP ID EP745366
- DOI https://doi.org/10.33422/ijarme.v5i2.884
- Views 50
- Downloads 0
The Financial Data Services Domain: From Taxonomies to Ontologies
There are many different types of instruments and hundreds of different markets for investment, leading to an extremely large and hard-to-define universe of financial data. The related commercial offer is extremely heter...
The Effect of Stakeholder’s Pressure on Firm Performance and the Moderating Role of Perceived Economic Crisis
The stakeholder pressure is one of the institutional pressures, in this regard, organizations have their internal characteristics to match the expectations of key stakeholders in the environment. In the present study, th...
Does Corporate Social Responsibility Spending Enhancing the Financial Performance?
This paper examines the dynamic relationship between financial performance FP and corporate social responsibility spending CSRS in Jordan. The dynamic panel system GMM measurement was utilized for 164 listed companies in...
Determinants of Post-Tax Audit Compliance in Ghana
Governments derive a significant portion of their income from taxation. Collection of tax is however impeded by tax non-compliant activities as well as tax evasion. This necessitates measures to ensure tax compliance, su...
Board of Directors Influence on Leverage: A Conceptual Perspective
Board of directors are considered as an important proxy of corporate governance mechanism. Corporate governance plays a significant role in the development structure of stock market and businesses growth. In Gulf Coopera...