Domestic Investment in Africa: Why the Emerging Public Debt Spiral Matters?

Fisayo Fagbemi and Olufemi Solomon Olatunde

back

References:

[1] Agidew, E.T. (2014). An Investigation of Macroeconomic Determinants of Domestic Private Investment Evidence from East Africa.

[2] Alesina, A., Ardagna, R. P., Perotti, R. & Schiantarelli, F. (2002). Fiscal Policy, Profits, and Investment. The American Economic Review, 92, 571–589.

[3] Apere, T.O. (2014). The Impact of Public Debt on Private Investment in Nigeria: Evidence from a Nonlinear Model. International Journal of Research in Social Sciences, 4(2), pp.130–138.

[4] Arellano, M. & Bover, O. (1995). Another Look at the Instrumental Variable Estimation of Error-Components Models. Journal of Econometrics, 68, pp.29-51.

[5] Arin, K. (2004). Fiscal Policy, Private Investment-7 and Countries. Retrieved from http://papers.ssrn.com/sol3/papers.cfm? abstractid=438785.

[6] Aristovnik, A., Mencinger, J. & Verbic, M. (2014). The Impact of Growing Public Debt on Economic Growth in European Union. Munich Personal RePec Archive, Paper No., (53243).

[7] Asante, Y. (2000). Determinants of Private Investment Behaviour in Ghana. African Consortium Reserarch Paper (Nairobi): Kenya.

[8] Atoyebi, K. O., Adekunjo, F. O., Kadiri, K. I. & Falana, A. A. (2012). The Determinants of Domestic Private Investment in Nigeria. Journal of Humanities and Social Science (JHSS), 2(6), 46-54.

[9] Balago, G.S. (2014). An Empirical Analysis of the Relationship between Government External Borrowings and Economic Growth in Nigeria. , 3(4), pp.235–243.

[10] Balls, A. (2005). How Government Spending Slows Growth. Retrieved 2014, from www.nber.org: www.nber.org/digest/jan00/w7207.html.

[11] Blejer, M., & Khan, M. S. (1984). Government Policy and Private Investment in Developing Countries. IMF Staff Paper, 31 (2), 379-403.

[12] Blundell, R. & Bond, S. (1998). Initial Conditions and Moment Restrictions in Dynamic Panel Data Models. Journal of Economics, (87): 115–43.

[13] Bonga, W. G., Chirowa, F., & Nyamapfeni, N. (2015). Growth–debt nexus: An examination of public debt levels and debt crisis in Zimbabwe. Journal of Economics and Finance, 6(2), 09–14.

[14] Checherita, C. & Rother, P. (2010). The impact of high and growing government debt on economic growth: an empirical investigation for the euro area: Working Paper Series. , No. 1237, Publication by European Central Bank.

[15] Ezeabasili, V. N., & Nwakoby, N. C. (2013). Fiscal Deficits and Private Investment: Econometric Evidence from Nigeria. International journal of Innovative Research in Management, 3(2), 1-18.

[16] Forni, L., Monteforte, L., & Sessa, L. (2009). The General Equilibrium Effects of Fiscal Policy: Estimates for the Euro Area. Journal of Public Economics, 93(3-4), 559-585.

[17] Fosu, A. K. (1996). The impact of external debt on economic growth in sub-Saharan Africa. Journal of Economic Development, 21(1): 93-117.

[18] Fosu, A. K. (1999). The external debt burden and economic growth in the 1980s: Evidence from Sub-Saharan Africa. Canadian Journal of Development Studies, 20 (2): 307-318.

[19] Froot, K. (1989). Buybacks, exibonds and the optimality of debt and liquidity relief. International economic review, 30: 49-70.

[20] Hermes, N., & Lensink, R. (2001). Fiscal Policy and Private Investment in Less Developed Countries. World Institute for Development Economics research, 32.

[21] Hoffman, B. & Reisen, H. (1991). Some Evidence on Debt-Related Determinants on Investment and Consumption in Heavily Indebted Countries. Welt Wirschafiliches Archive, 127(2): 280-297.

[22] Isah, I. P. (2012). Deficit Financing and its Implication on Private Sector Investment: The Nigerian. Arabian Journal of Business and Management Review, 1(9).

[23] Iyoha, M. A. (1999). External Debt and Economic Growth in Sub-Saharan African Countries: An Econometric Study. AERC Research Paper 90, Nairobi Kenya

[24] Jilenga, M.T. & Xu, H. (2016). The Impact of External Debt and Foreign Direct Investment on Economic Growth: Empirical Evidence from Tanzania. , 7(2), pp.154–162.

[25] Jorgensen, D. (1967). The Theory of Investment Behaviors, in Determinants of Investment. National Bureau of Economic Research, 129-155.

[26] Kaminsky, G. L., Reinhart, C.M. & Vegh, C.A. (2005). When It Rains, It Pours: Procyclical Capital Flows and Macroeconomic Policies. In NBER Macroeconomics Annual 2004, vol. 19, edited by M. Gertler and K. Rogoff. Cambridge, MA: National Bureau of Economic Research.

[27] Kapoor, K., Kararach, G., Odour, J., Odero, W., Sennoga, E. Coulibaly, B., Nakata, R. (2019). Cooperation with Africa: Fiscal and debt sustainability in Africa. G20, 2019, Japan.

[28] Karago, E., & Ozdemir, K. (2006). Government Expenditure and Private Investment: Evidence from Turkey. The Middle East Business and Economic Review, 18(2), 33-38.

[29] Kasidi, F. & Said, A.M. (2013). Impact of External Debt on Economic Growth: A Case Study of Tanzania. , 3(4), pp.59–82.

[30] Kibet, K. S. (2013). Effect of budget deficit and corruption on private investment in developing countries: A panel data analysis. African Journal of Business Management, 7(27), 2720-2732.

[31] Krugman, P. (1988). Financing versus forgiving a debt overhang. NBER Working Paper 2486. www.nber.org/papers (accessed 23 May 2016).

[32] Kumar, M.S. & Woo, J. (2015). Public Debt and Growth. Economica, 2015(82), pp.705–739.

[33] Long, C. & Miller, M. (2017). Taxation and the Sustainable Development Goals: do good things come to those who tax more? ODI Briefing Note, London: Overseas Development Institute.

[34] Mabula, S. & Mutasa, F. (2019).The Effect of Public Debt on Private Investment in Tanzania. African Journal of Economic Review, VII (I): 109-135.

[35] Malik, A. (2013). Private Investment and Fiscal Policy in Pakistan. Journal of Economic Development, 38(1), 89-91.

[36] Marattin, L. & Salotti, S. (2010). On the Usefulness of Government Spending in the EU area. MPRA Paper No. 24906.

[37] Moshi, H.P.B. & Kilindo, A.A.L. (1999). The Impact of Government Policy on Macroeconomic Variables: A Case Study of Private Investment in Tanzania. African Economic Reserch Consortium, Paper No 8(1999), p.Nairobi.

[38] Mustapha, S. & Prizzon, A. (2018). Africa’s rising debt: How to avoid a new crisis. ODI Briefing Note, London: Overseas Development Institute,

[39] Naa-Idar, F., Ayentimi, D. T. & Frimpong, M. J. (2012). A Time Series Analysis of Determinants of Private Investment in Ghana (1960-2010). Journal of Economics and Sustainable Development, 3(12), 23-33.

[40] Omojolaibi1, J.A. Tochi-Nze P. Okenesi, T.P. & Mesagan E.P. (2016). Fiscal Policy and Private Investment in Selected West African Countries. CBN Journal of Applied Statistics, 7(1): 277-309.

[41] Parks, R. (1967). Efficient Estimation of a System of Regression Equations when Disturbances are both serially and Contemporaneously Correlated. Journal of the American Statistical Association, 62, 500–9.

[42] Pattillo, C., Poirson H. & Ricci, L. (2002). External Debt and Growth. IMF Working Paper 02/69, 1-47. http://www.imf.org/pubs/2002 (Accessed 20 May 2016).

[43] Pattillo, C., Poirson, H., Ricci, L., Kraay, A., & Rigobon, R. (2004). Through what channels does external debt affect growth? The Brooking Trade Forum, 229-277. http://www.grips.ac.jp/docu01/paper06 (Accessed 23May 2016).

[44] Presbitero, A.F. & Panizza, U. (2012). Public Debt and Economic Growth: Is There a Causal Effect? POLIS Online Working Papers. ISSN 2038-7296.

[45] Sachs, J. (1989). The debt overhang of developing countries, in G.calvo, R. Findlay, P. Kouri and J. Macedo (eds.), debt, stabilization and development. Essay in memory of Carlos Diaz – Alejardo, Oxford: Basic Blackwell, 80-102.

[46] Sanchez-Juarez, I. & Garcia-Almada, R. (2016). Public Debt, public investment and economic growth in Mexico, International Journal of Financial Studies, 2016, 4 (6); doi: 10.3390/ijfs4020006.

Savvides, A. (1992). Investment slowdown in developing countries during the 1980s: Debt overhang or foreign capital inflows? Kyklos, 45(3): 363-378.

[47] Senadza, B., Fiagbe, A. K. & Quartey, P. (2018). The effect of external debt on economic growth in Sub-Saharan Africa. International Journal of Business and Economic Sciences Applied Research (IJBESAR), ISSN 2408-0101, Eastern Macedonia and Thrace Institute of Technology, Kavala, Vol. 11, Iss. 1, pp. 61-69, http://dx.doi.org/10.25103/ijbesar.111.07.

[48] Serieux, J. & Yiagadeesen, S. (2001). The debt service burden and growth: Evidence from low income countries. The North-South Institute, Ottawa.http://www.researchgate.net/publication (Accessed20 May 2016).

[49] Sichula, M. (2012). Overhang and Economic Growth in HIPC Countries: The Case of Southern African Development Community (SADC). International Journal of Economics and Finance, 4(10), pp.82–92.

[50] Soli, V., Harvey, S. K. & Hagan, E. (2008). Fiscal Policy, Private Investment and Economic Growth: The Case of Ghana. Studies in Economics and Finance, 25(2), 112-130.

[51] Traum, N. & Yang, S. (2010). Does Government Debt Crowd Out Investment? A Bayesian DSGE Approach. Working Paper Series, available at http://www.cbo.gov/ftpdocs/114xx/doc11430/04-2010-Working Paper-Crowding out.pdf.

[52] UNCTAD (2016). Economic Development in Africa Report: Debt dynamics and development finance in Africa. United Nations Conference on Trade and Development, New York and Geneva: United Nations.

United Nations Economic Commission for Africa (2019). Economic Report on Africa: Fiscal policy for financing sustainable development in Africa.

[53] Vergara, R. (2004). Taxation and Private Investment Evidence for Chile. Applied Economics, 42, 717–725

Copyright © 2009 | All rights reserved