External debt, corruption, and economic growth in selected five Sub-Saharan African countries

External Debt has become a serious issue of concern among the sub-Saharan African countries because of the rising burden of debt servicing. The main objective of this study is to examine the impact of external debt and corruption on economic growth of the selected five SSA countries from 1990 to 201...

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Main Author:	Olawale, Shittu Waliu
Format:	Thesis
Language:	eng eng
Published:	2017
Subjects:	HC Economic History and Conditions HG Finance
Online Access:	https://etd.uum.edu.my/6951/1/s820058_01.pdf https://etd.uum.edu.my/6951/2/s820058_02.pdf
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id	my-uum-etd.6951
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Hassan, Sallahuddin
topic	HC Economic History and Conditions HG Finance
spellingShingle	HC Economic History and Conditions HG Finance Olawale, Shittu Waliu External debt, corruption, and economic growth in selected five Sub-Saharan African countries
description	External Debt has become a serious issue of concern among the sub-Saharan African countries because of the rising burden of debt servicing. The main objective of this study is to examine the impact of external debt and corruption on economic growth of the selected five SSA countries from 1990 to 2015, using two-gap and the modified-Solow growth models. Panel Unit Root and Panel Cointegration tests were employed to test for stationarity of the series and the long run relationship respectively. FMOLS estimation technique was then employed to examine the long-run coefficients of the variables of the model, and panel granger causality test, in order to examine the direction of causality among the variables. The results indicate that there is negative relationship between external debt and economic growth, as well bi-directional causality between the two variables. The results also indicate a positive relationship between corruption and economic growth, as well as the existence of no causality between the two variables. The study therefore recommends that the governments should address the menace of the rising debt through the adoption of other sources of capital for investment, such as more openness of the economy for more capital, by easing the restrictions on genuine imports and exports of valuable goods and services. It also suggests that the issue of corruption be tackled head-on, by such penalties that tend to make corruption less attractive.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Olawale, Shittu Waliu
author_facet	Olawale, Shittu Waliu
author_sort	Olawale, Shittu Waliu
title	External debt, corruption, and economic growth in selected five Sub-Saharan African countries
title_short	External debt, corruption, and economic growth in selected five Sub-Saharan African countries
title_full	External debt, corruption, and economic growth in selected five Sub-Saharan African countries
title_fullStr	External debt, corruption, and economic growth in selected five Sub-Saharan African countries
title_full_unstemmed	External debt, corruption, and economic growth in selected five Sub-Saharan African countries
title_sort	external debt, corruption, and economic growth in selected five sub-saharan african countries
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2017
url	https://etd.uum.edu.my/6951/1/s820058_01.pdf https://etd.uum.edu.my/6951/2/s820058_02.pdf
_version_	1747828134862913536
spelling	my-uum-etd.69512021-08-18T05:33:54Z External debt, corruption, and economic growth in selected five Sub-Saharan African countries 2017 Olawale, Shittu Waliu Hassan, Sallahuddin Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HC Economic History and Conditions HG Finance External Debt has become a serious issue of concern among the sub-Saharan African countries because of the rising burden of debt servicing. The main objective of this study is to examine the impact of external debt and corruption on economic growth of the selected five SSA countries from 1990 to 2015, using two-gap and the modified-Solow growth models. Panel Unit Root and Panel Cointegration tests were employed to test for stationarity of the series and the long run relationship respectively. FMOLS estimation technique was then employed to examine the long-run coefficients of the variables of the model, and panel granger causality test, in order to examine the direction of causality among the variables. The results indicate that there is negative relationship between external debt and economic growth, as well bi-directional causality between the two variables. The results also indicate a positive relationship between corruption and economic growth, as well as the existence of no causality between the two variables. The study therefore recommends that the governments should address the menace of the rising debt through the adoption of other sources of capital for investment, such as more openness of the economy for more capital, by easing the restrictions on genuine imports and exports of valuable goods and services. It also suggests that the issue of corruption be tackled head-on, by such penalties that tend to make corruption less attractive. 2017 Thesis https://etd.uum.edu.my/6951/ https://etd.uum.edu.my/6951/1/s820058_01.pdf text eng public https://etd.uum.edu.my/6951/2/s820058_02.pdf text eng public masters masters Universiti Utara Malaysia Abdullahi, M. M., Hassan, S. B., & Bakar, N. A. B. A. (2016). Analyzing the impact of external debt on capital formation in Nigeria: An Autoregressive Distributed Lag Approach. Mediterranean Journal of Social Sciences, 7(1), 173-183. Acemoglu, D., & Verdier, T. (1998). Property rights, corruption and the allocation of talent: A general equilibrium approach. The Economic Journal, 108(450), 1381-1403. Adegbite, E. O., Ayadi, F. S., & Felix Ayadi, O. (2008). The impact of Nigeria's external debt on economic development. International Journal of Emerging Markets, 3(3), 285-301. Agénor, P.-R. (2012). 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External debt, corruption, and economic growth in selected five Sub-Saharan African countries

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