The Impact of Selected Economic Indicators on the Debt Levels of African Countries
This paper assesses the effect of selected economic variables on the debt situation of African countries. The data for the study were obtained from World Bank and International Monetary Fund (IMF) sources covering the period 1960-89. The data were analyzed by multiple regression analysis using the model expressing debt repayment as a function of debt stock, import expenditure, gross national product per capita, and international reserves. The results indicated that the model had good structural quality as reflected the generally high explanatory power, and the fact that debt stock, import expenditure, gross national product per capita, and international reserves had a significant effect on debt repayment for almost all the countries. Most of the elasticities were greater than 1.00, except for the international reserves elasticities which tended to be inelastic in general. The results suggest that the countries will have to implement policies geared towards increasing GNP and trade opportunities which improve the balance of trade and strengthen their debt repayment capacity.
Volume (Year): 2 (1996)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.jadafea.com/|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:afe:journl:v:3:y:1996:i:1:p:23-36. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mwangi wa Githinji)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.