Browsing by Subject "external debt"

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    Open Access
    Analysing the role of external debt and corruption on economic growth in the Sub-Saharan African Region
    (2025) Chicha, Chilala; Mpofu, Trust
    This paper examines the relationship between corruption, external debt and economic growth in the Sub-Saharan African region as the roles of external debt and corruption as growth drivers or deterrents remains inconclusive. The paper employs a two-step system generalized method of moments (sysGMM) model to estimate the relationship between external debt, corruption and economic growth. An interaction term between external debt and corruption is included to determine whether the impact of external debt on growth is influenced by the level of perceived corruption in an economy. Corruption is found to have a negative and often significant relationship with economic growth whilst external debt has significant, varying associations with economic growth. The interaction between debt and corruption is also found to significantly influence economic growth.
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    Open Access
    The effect of capital flows on the Kenyan economy
    (2014) Muthuuri, Njoki; Gossel, Sean J
    Foreign capital inflows (FCI) play an important role in the economic development of the recipient country as they fund investments and promote growth. However, the size and composition of such inflows are determined on the basis of country specific requirements. The study investigates the impact of capital inflows on the economy of Kenya at a time when the government implemented economic reform measures to stabilize the economy and restore sustainable growth. More specifically, the study examines the impact of foreign capital flows remittances such as overseas workers remittance, official development aid, and external debt, on selected macro-economic variables using monthly time series data and a single-equation empirical approach. The study findings reveal that some forms of FCI are not influenced by the macro economic variables in the country but by other factors such as political stability and policy variables.