Public debt and economic growth nexus in sub-saharan Africa: does institutional quality matter?

Oppong, Clement; Atchulo, Abukari Salifu; Oman, Shenell Fatia

doi:10.1080/02692171.2023.2205107

Cited by 5 publications

(5 citation statements)

References 36 publications

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“…Indeed, a 1% increase in public debt leads to a 0.155% increase in GDP per capita. This result rejects the findings of Oppong et al (2023), who found that public debt has a negative impact on economic growth. In fact, public debt is an alternative means of financing major public projects.…”

Section: Discussioncontrasting

confidence: 98%

“…This result shows the importance of improving institutions in Ivory Coast. The result is similar to the findings of Dani Rodrik (1999); Sani, Said, Ismail, and Mazlan (2019); Oppong et al (2023); Vianna and Mollick (2018) and Hussen (2023). Institutions improve the effects of public spending on GDP per capita, but only significantly over time.…”

Section: Discussionsupporting

confidence: 87%

“…The results indicated that a 0.1-point increase in institutional quality leads to a 3.9% improvement in GDP per capita. Oppong, Atchulo, and Oman (2023) analyzed the effects of institutional quality and public debt on economic growth in 35 Sub-Saharan African countries over the period 2010 -2020. They used fixed-effects estimation techniques and generalized systems of moments.…”

Section: Literature Reviewmentioning

confidence: 99%

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Public spending and economic growth: The role of institutions in Ivory Coast

Ouattara

2024

AJEER

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Several studies have analysed the effects of public spending, institutions and interaction between public spending and institutions on economic activity. This existing literature has ignored the effect of institutional shocks on the relationship between public spending and economic growth. To fill this gap, the current study aims to estimate the effects of public spending, institutional factors and institutional shocks on GDP per capita in Ivory Coast. It uses annual data that covers the period 1984-2019. We exploit the principal component analysis technique to construct an institutional composite index. We then estimate two Nonlinear AutoRegressive Distributed Lag models with interaction variables such as institutional index and public spending, corruption and public spending. The empirical results reveal symmetric effects of long-run institutional and corruption shocks on GDP per capita. In contrast, the effects of institutions are asymmetric in the short term. Negative institutional shocks worsen GDP per capita in the short term, as do positive corruption shocks in the long term. Similarly, public spending promotes economic growth, but neither institutions nor corruption significantly accentuate its effects. These results imply that improving the efficiency of public spending requires a prior improvement in the institutional framework and, above all, in the fight against corruption.

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Section: Discussioncontrasting

confidence: 98%

Section: Discussionsupporting

confidence: 87%

Section: Literature Reviewmentioning

confidence: 99%

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Public spending and economic growth: The role of institutions in Ivory Coast

Ouattara

2024

AJEER

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“…In line with literature, Economic Growth was proxied with annual GDP growth (GDPG) rate (Abdullah et al, 2019;Daud, 2020); Unemployment was proxied with relative unemployed active labor force (O'Leary, 2022); Sustainable Entrepreneurship was proxied as shown in Equation 1 below (Dhahri & Omri, 2018;Kpegba et al, 2023;Youssef et al, 2018). Working Age Population was proxied with active labor force between the ages of 15-64 years relative to total population (Kpegba et al, 2023); Foreign Direct Investment was measured as total net inflows of investment relative to GDP (Tarek & Ahmed, 2017); trade openness was measured as total import and export relative to GDP (Oppong et al, 2023;Kim, 2017), and Inflation was also proxied with consumer price index (Oppong et al, 2023;Tarek & Ahmed, 2017).…”

Section: Variables and Measurementmentioning

confidence: 99%

Sustainable entrepreneurship: A catalyst for unemployment reduction and economic growth in Anglophone and Francophone countries

Mathibe,

Oppong

2024

Bus Strat Dev

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The purpose of the study is in two fold. First, the study examines the impact of language, history, and culture in Anglophone and Francophone countries on the rate of unemployment and economic growth. Second, the study explores the extent to which sustainable entrepreneurship influences the rate of unemployment, and economic growth in Anglophone and Francophone (A&F) countries. The study employed a descriptive and quantitative research design where a longitudinal data were sourced from the World Development Indicators and World Bank Entrepreneurship databases on 12 and 9 Francophone and Anglophone countries respectively. The random effect and the generalized method of moments (GMM) regression models were employed to attain the objectives of the study. The findings of the study revealed that there is a significant negative effect of sustainable entrepreneurship on unemployment; sustainable entrepreneurship has a positive significant effect on economic growth; and also, history and culture were found to have a significant impact on unemployment reduction and economic growth. However, language was found to have an insignificant influence between A&F countries suggesting that the ability of sustainable entrepreneurship to minimize the rate of unemployment and boost economic growth is generic irrespective of linguistic factors.

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“…In terms of empirical evidence, this study fills the vacuum in literature by focusing on the developing countries in Africa to explain this nexus due to the distinctive features of these countries – in terms of economic recession, poor public management initiatives, unemployment, and rapid population growth – which could reveal novel findings that will extensively enrich our understanding in the context of developing countries (Oppong et al, 2023). The study used a quantitative research design and descriptive approach in attaining the research objectives.…”

Section: Introductionmentioning

confidence: 99%

Urban entrepreneurship, public management and sustainability nexus: Evidence from developing countries

Kpegba,

Oppong,

Atchulo

2023

Sustainable Development

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PurposeThis study examines the nexus of urban entrepreneurship, public management and sustainability within the context of developing countries.Design/Methodology/ApproachThe study adopted a quantitative and descriptive approach, using data from the World Development Indicators (WDI) and the World Bank Entrepreneurship database for 12 developing countries from 2013 to 2018. The analysis was carried out using a panel regression model with fixed effect.FindingsThe results show a significant relationship between urban entrepreneurship and economic sustainability; and also, a significant relationship between public management and economic sustainability among developing African countries.Practical ImplicationsThis implies that developing countries need to offer incentives to the private sector to encourage entrepreneurial activities which will subsequently improve economic sustainability.Originality/ValueThis study adds to literature by examining the nexus of urban entrepreneurship, public management and sustainability among developing countries in a single model using quantitative approach.

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Public debt and economic growth nexus in sub-saharan Africa: does institutional quality matter?

Cited by 5 publications

References 36 publications

Public spending and economic growth: The role of institutions in Ivory Coast

Public spending and economic growth: The role of institutions in Ivory Coast

Sustainable entrepreneurship: A catalyst for unemployment reduction and economic growth in Anglophone and Francophone countries

Urban entrepreneurship, public management and sustainability nexus: Evidence from developing countries

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