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Dynamic relationship between external debt and unemployment in Sub-Saharan Africa

Author

Listed:
  • Samuel Erasmus ALNAA

    (Bolgatanga Technical University, Ghana)

  • Juabin MATEY

    (Bolgatanga Technical University, Ghana)

Abstract

The struggle to reduce cyclical unemployment by Sub-Saharan African countries is as a result of their inability to integrate fiscal policies into macroeconomic goals and establish independent, well-resourced bodies to manage borrowed funds. We examine the dynamic relationship between external debt and unemployment in Sub-Saharan Africa using data from 25 countries. This study demonstrates a direct relationship between foreign debt and unemployment, which is attributed to the erroneous application of discretionary fiscal policy decisions and the inefficient use of borrowed funds. Evidence also suggests a nonlinear relationship between external debt and unemployment across the countries studied.

Suggested Citation

  • Samuel Erasmus ALNAA & Juabin MATEY, 2023. "Dynamic relationship between external debt and unemployment in Sub-Saharan Africa," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(634), S), pages 137-152, Spring.
    • Handle: RePEc:agr:journl:v:1(634):y:2023:i:1(634):p:137-152
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    References listed on IDEAS

    as
    1. Sima Rani Dey & Mohammad Tareque, 2020. "External debt and growth: role of stable macroeconomic policies," Journal of Economics, Finance and Administrative Science, Emerald Group Publishing Limited, vol. 25(50), pages 185-204, July.
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