IDEAS home Printed from https://ideas.repec.org/a/spr/snbeco/v4y2024i3d10.1007_s43546-024-00628-3.html
   My bibliography  Save this article

Public debt and unemployment in Sub-Saharan Africa: the role of institutional framework

Author

Listed:
  • Daniel Tang

    (SD Dombo University of Business and Integrated Development Studies)

  • Haruna Issahaku

    (University for Development Studies)

Abstract

Literature has documented extensive works on the relationship between public debt and unemployment. However, there is no documented literature on the role of institutions in the relationship between public debt and unemployment. The primary aim of this study was to assess the role of institutional quality in the relationship between public debt and unemployment in the SSA region. The study used annual panel data of 36 selected SSA economies covering 1996–2020. The System Generalised Method of Moments (SGMM) was used as the main empirical estimation tool. The findings from the study indicated that public debt acquisition is not contributing to reducing the unemployment situation in the SSA region. It was also revealed that institutional quality serves as a good moderator which ensures the inverse relationship between public debt and unemployment. The research concluded that debts acquired are not channelled to employment creation in the SSA region. However, with stronger institutions, debts can be channelled to create employment. It is, therefore, recommended that governments in SSA should comprehensively improve institutional quality before strides could be made in effectively utilising debts to create employment.

Suggested Citation

  • Daniel Tang & Haruna Issahaku, 2024. "Public debt and unemployment in Sub-Saharan Africa: the role of institutional framework," SN Business & Economics, Springer, vol. 4(3), pages 1-26, March.
  • Handle: RePEc:spr:snbeco:v:4:y:2024:i:3:d:10.1007_s43546-024-00628-3
    DOI: 10.1007/s43546-024-00628-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43546-024-00628-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s43546-024-00628-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:snbeco:v:4:y:2024:i:3:d:10.1007_s43546-024-00628-3. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.