The Impact of External Debt on Economic Growth in Kenya PDF Download
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Author: Maureen Were
Publisher:
ISBN:
Category : Debts, External
Languages : en
Pages : 28
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Book Description
Author: Maureen Were
Publisher:
ISBN:
Category : Debts, External
Languages : en
Pages : 28
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Book Description
Author: Owen Adams
Publisher: GRIN Verlag
ISBN: 3346923983
Category : Political Science
Languages : en
Pages : 16
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Book Description
Essay from the year 2022 in the subject Business economics - Economic Policy, grade: 5.0, , language: English, abstract: This paper examines the impact of external public debt on the economic growth of developing countries. It delves into the dynamics of borrowing, debt service, and their effects on long-term economic development. The study analyzes established economic growth theories, including the neoclassical and endogenous growth models, to understand the intricate relationships between investment, technology, and labor that shape a nation's economic trajectory. It further explores the implications of debt through liquidity constraint and debt overhang theories, highlighting the potential crowding-out effect and diminished local resources for development due to debt service obligations.
Author: Michael Kithinji
Publisher: GRIN Verlag
ISBN: 3346656209
Category : Political Science
Languages : en
Pages : 39
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Book Description
Bachelor Thesis from the year 2021 in the subject Politics - Region: Africa, , language: English, abstract: This paper discusses the effect of public debt and budget deficit on Kenya's economic growth. Kenya's public debt has proliferated, precipitating debate on its impact on economic performance and causing public anxiety. The purpose of this quantitative ex post facto study was to investigate the long run and causal relationship between Kenya's public debt and economic growth. Keynesian's theory, Ricardian equivalence theory, and neoclassical theory provided the framework for the study. Research questions one and two address the causal relationship between public debt and select covariates as independent variables and actual gross domestic product (GDP) growth rate as the dependent variable. Research question three addresses the relationship between primary budget balance and public debt. Archival data were analyzed using the vector error correction model and autoregressive distributed lag methods. Findings show a positive long-run causality between public debt and real GDP growth. The relationship between primary budget balance and public debt is positive and statistically significant, demonstrating that Kenya's debt is sustainable. Findings may be used to promote the adoption of fiscal policies that increase economic growth, savings, investments, job creation, and living standards of Kenyans. For a good economy to thrive in any given country, there should be plenty of productive resources for its needs at that particular time. In most countries, especially Kenya, needs are growing while the resources to meet them are insufficient or even depleted completely. The growing budget has become a problem for the Kenyan government since our economies are expanding. However, the rate is not able to meet the rising demand for the ever-increasing population. At this level, the country is forced to procure internal and external debts to finance its budget deficit. However, in the long run, this does not solve the problem because the investment programs do not give good returns, hence losing.
Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1451821115
Category : Business & Economics
Languages : en
Pages : 12
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Book Description
This report of the Debt Sustainability Analysis (DSA) indicates that the envisaged strategy of a partial substitution of domestic debt by increased inflows of external grants and concessional loans, as well as a rescheduling of external debt by the Paris and London Clubs, would facilitate the achievement of debt sustainability. The DSA also confirms that such a debt rescheduling could constitute an appropriate exit strategy for Kenya. The DSA also shows that debt sustainability would improve significantly with a concessional rescheduling, particularly under the Naples terms.
Author: M. Ayhan Kose
Publisher: World Bank Publications
ISBN: 1464815453
Category : Business & Economics
Languages : en
Pages : 403
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Book Description
The global economy has experienced four waves of rapid debt accumulation over the past 50 years. The first three debt waves ended with financial crises in many emerging market and developing economies. During the current wave, which started in 2010, the increase in debt in these economies has already been larger, faster, and broader-based than in the previous three waves. Current low interest rates mitigate some of the risks associated with high debt. However, emerging market and developing economies are also confronted by weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood that the current debt wave will end in crisis and, if crises do take place, will alleviate their impact.
Author: Wanjuki Ngugi
Publisher:
ISBN: 9783659960635
Category :
Languages : en
Pages : 92
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Book Description
Author: Mr.Boileau Loko
Publisher: International Monetary Fund
ISBN: 1451848196
Category : Business & Economics
Languages : en
Pages : 27
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Book Description
This paper explores the relationship between external debt and poverty. A number of observers have argued that high external indebtedness is a major cause of poverty. Using the first-differenced general method of moments (GMM) estimator, the paper models the impact of external debt on poverty, measured by life expectancy, infant mortality, and gross primary enrollment rates, while duly taking into account the impact of external debt on income. The paper thus endeavors to bring together the literature that links external debt with income growth and poverty. The main conclusion is that once the effect of income on poverty has been taken into account, external indebtedness indicators have a limited but important impact on poverty.
Author: Atakilt Hagos
Publisher: LAP Lambert Academic Publishing
ISBN: 9783844319828
Category :
Languages : en
Pages : 80
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Book Description
The effect of external debt on economic growth has been among the contentious issues. Based on panel data for 44 Sub-Saharan African countries for a period of over 30 years, this book reveals that external debt stock and debt services are found to have a statistically significant negative impact on economic growth especially at higher debt levels of debt/GDP ratio. The growth maximizing level of debt stock ranges from 25% to 45% of GDP. Furthermore, external debt affected growth by adversely affecting human capital formation. Debt service payments are also found to have the "crowding out" effects on private investment. The implication of these findings is that countries in Africa should align their public policies towards maintaining a sustainable level of indebtedness, improve the quality of their man power, enhance good governance and control corruption. In addition to the provision of new loans, developed countries and multilateral institutions should foster development cooperation and fairer trade for Africa. Postgraduate students and other researchers will benefit by reading this book as it adds value to the theoretical and empirical literature on external debt.
Author: Alfred Greiner
Publisher: Springer Science & Business Media
ISBN: 3642017452
Category : Business & Economics
Languages : en
Pages : 148
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Book Description
Starting point of this book is the observation that an increase in public debt must be accompanied by a rise in the primary surplus of the government to guarantee sustainability of public debt. The book first elaborates on that principle from a theoretical point of view and then tests whether empirical evidence for that rule can be found. Additional tests are implemented to gain further evidence on sustainability of public debt. In order to allow for time varying coefficients penalized spline estimations are performed. The theoretical chapters present endogenous growth models and assume that the primary surplus rises as public debt increases so that sustainability of public debt is given. Implications of public deficits and debt are studied assuming full employment and for unemployment. The conclusion summarizes the findings and compares the results of the different models. Finally, policy implications are given showing how governments should deal with high public debt to GDP ratios.
Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1451821034
Category : Business & Economics
Languages : en
Pages : 125
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Book Description
This paper reviews economic developments in Kenya during 1990–95. Real GDP growth decelerated from 4.3 percent in 1990 to close to zero in 1992/93. Inflation accelerated from 12 percent in the 12-month period ended December 1989 to 34 percent in March 1993. The central government’s budget deficit increased from 6.7 percent in 1989/90 to 11.4 percent of GDP in 1992/93. Broad money growth (M2) accelerated from 21 percent in the 12-month period ended December 1991 to 36 percent in March 1993.
