On the Dynamic Effect of Bilateral Concessional Debts on Living Standards in Sub-Saharan Africa
This article assesses the effectiveness of bilateral concessional debts on living standards in 29 sub-Saharan African (SSA) countries over the period 1999-2017 using the system generalized method of moments (SGMM). The SGMM linear estimate is based on a two-step procedure, which controls for heteros...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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SAGE Publishing
2019-09-01
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| Series: | SAGE Open |
| Online Access: | https://doi.org/10.1177/2158244019877879 |
| _version_ | 1819016028383870976 |
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| author | Hillary Chijindu Ezeaku Ifeoma C. Nwakoby Obiamaka P. Egbo Josaphat U. J. Onwumere |
| author_facet | Hillary Chijindu Ezeaku Ifeoma C. Nwakoby Obiamaka P. Egbo Josaphat U. J. Onwumere |
| author_sort | Hillary Chijindu Ezeaku |
| collection | DOAJ |
| description | This article assesses the effectiveness of bilateral concessional debts on living standards in 29 sub-Saharan African (SSA) countries over the period 1999-2017 using the system generalized method of moments (SGMM). The SGMM linear estimate is based on a two-step procedure, which controls for heteroscedasticity. The results provide evidence that bilateral concessional debts had positive and significant impact on living standards as proxied by the human development index (HDI) within the period. It is observed that 1% change in bilateral concessional debts is associated with about 8.4% improvement in living standards. Gross domestic savings are positively and significantly related to living standards and account for 3.1% increase in living standards. However, gross domestic investment and population growth exerted a negative influence on living standards during the period, whereas a 1% increase in gross domestic investment and population led to approximately 1.40% and 1.63% decline in living standards in the region, respectively. We therefore conclude that, although bilateral concessional debts have yielded the desired effect on living standards in the SSA, there is need for improvements in aid effectiveness. Thus, improved donor effort and collaboration with beneficiary governments in determining development needs and priorities in the region is critical. |
| first_indexed | 2024-12-21T02:41:07Z |
| format | Article |
| id | doaj.art-2cab4a4b90fa4f4194766db89701b79c |
| institution | Directory Open Access Journal |
| issn | 2158-2440 |
| language | English |
| last_indexed | 2024-12-21T02:41:07Z |
| publishDate | 2019-09-01 |
| publisher | SAGE Publishing |
| record_format | Article |
| series | SAGE Open |
| spelling | doaj.art-2cab4a4b90fa4f4194766db89701b79c2022-12-21T19:18:40ZengSAGE PublishingSAGE Open2158-24402019-09-01910.1177/2158244019877879On the Dynamic Effect of Bilateral Concessional Debts on Living Standards in Sub-Saharan AfricaHillary Chijindu Ezeaku0Ifeoma C. Nwakoby1Obiamaka P. Egbo2Josaphat U. J. Onwumere3Caritas University, Enugu, NigeriaUniversity of Nigeria, Enugu, NigeriaUniversity of Nigeria, Enugu, NigeriaUniversity of Nigeria, Enugu, NigeriaThis article assesses the effectiveness of bilateral concessional debts on living standards in 29 sub-Saharan African (SSA) countries over the period 1999-2017 using the system generalized method of moments (SGMM). The SGMM linear estimate is based on a two-step procedure, which controls for heteroscedasticity. The results provide evidence that bilateral concessional debts had positive and significant impact on living standards as proxied by the human development index (HDI) within the period. It is observed that 1% change in bilateral concessional debts is associated with about 8.4% improvement in living standards. Gross domestic savings are positively and significantly related to living standards and account for 3.1% increase in living standards. However, gross domestic investment and population growth exerted a negative influence on living standards during the period, whereas a 1% increase in gross domestic investment and population led to approximately 1.40% and 1.63% decline in living standards in the region, respectively. We therefore conclude that, although bilateral concessional debts have yielded the desired effect on living standards in the SSA, there is need for improvements in aid effectiveness. Thus, improved donor effort and collaboration with beneficiary governments in determining development needs and priorities in the region is critical.https://doi.org/10.1177/2158244019877879 |
| spellingShingle | Hillary Chijindu Ezeaku Ifeoma C. Nwakoby Obiamaka P. Egbo Josaphat U. J. Onwumere On the Dynamic Effect of Bilateral Concessional Debts on Living Standards in Sub-Saharan Africa SAGE Open |
| title | On the Dynamic Effect of Bilateral Concessional Debts on Living Standards in Sub-Saharan Africa |
| title_full | On the Dynamic Effect of Bilateral Concessional Debts on Living Standards in Sub-Saharan Africa |
| title_fullStr | On the Dynamic Effect of Bilateral Concessional Debts on Living Standards in Sub-Saharan Africa |
| title_full_unstemmed | On the Dynamic Effect of Bilateral Concessional Debts on Living Standards in Sub-Saharan Africa |
| title_short | On the Dynamic Effect of Bilateral Concessional Debts on Living Standards in Sub-Saharan Africa |
| title_sort | on the dynamic effect of bilateral concessional debts on living standards in sub saharan africa |
| url | https://doi.org/10.1177/2158244019877879 |
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