“DELIVER AFRICA FROM DEBTS”: GOOD GOVERNANCE ALONE IS NOT ENOUGH TO SAVE THE CONTINENT FROM DEBT ONSLAUGHT

Abstract

The present article analyzes the debt–economic growth nexus in African countries while controlling for the impact of good governance indicators. In contrast to a long tradition of scholarship that has consistently suggested that government debt has a detrimental impact on economic growth in sub-Saharan Africa, recent studies have actually shown that government debt, when coupled with improvements in the quality of government, is actually a driver of economic growth. By analyzing an original dataset that covers the 2002–15 period and additional debt–economic growth data going up to the year 2020, we are able to suggest three conclusions....