Debt overhang versus crowding out effects: Understanding the impact of external debts on capital formation in theory
This is a conceptual analysis of the relationships between external debt and capital formation geared towards a proper assessment and understanding the experiences of Sub-Saharan African (SSA) countries external debts experiences.The study established that debt in general and external debt in partic...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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EconJournals
2016
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| Online Access: | https://repo.uum.edu.my/id/eprint/18235/1/IJEFI%20%206%201%202016%20271-278.pdf |
| _version_ | 1825804005221072896 |
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| author | Abdullahi, Muhammad Mustapha Abu Bakar, Nor'Aznin Hassan, Sallahuddin |
| author_facet | Abdullahi, Muhammad Mustapha Abu Bakar, Nor'Aznin Hassan, Sallahuddin |
| author_sort | Abdullahi, Muhammad Mustapha |
| collection | UUM |
| description | This is a conceptual analysis of the relationships between external debt and capital formation geared towards a proper assessment and understanding the experiences of Sub-Saharan African (SSA) countries external debts experiences.The study established that debt in general and external debt in particular is a necessary evil that all economies survive with.During the five decades of external debt experiences in SSA, all indices have indicated adverse relationships amongst and between all variables of interest in these countries. Most important of the negative consequences was the debt overhang and crowding out effects and their attendant effects on the economies.The study has shown that it has negatively affected the positive development of capital formation being one of the essential macroeconomic variables for a sustained economic development. |
| first_indexed | 2024-07-04T06:07:20Z |
| format | Article |
| id | uum-18235 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:07:20Z |
| publishDate | 2016 |
| publisher | EconJournals |
| record_format | eprints |
| spelling | uum-182352016-06-26T08:51:46Z https://repo.uum.edu.my/id/eprint/18235/ Debt overhang versus crowding out effects: Understanding the impact of external debts on capital formation in theory Abdullahi, Muhammad Mustapha Abu Bakar, Nor'Aznin Hassan, Sallahuddin HJ Public Finance This is a conceptual analysis of the relationships between external debt and capital formation geared towards a proper assessment and understanding the experiences of Sub-Saharan African (SSA) countries external debts experiences.The study established that debt in general and external debt in particular is a necessary evil that all economies survive with.During the five decades of external debt experiences in SSA, all indices have indicated adverse relationships amongst and between all variables of interest in these countries. Most important of the negative consequences was the debt overhang and crowding out effects and their attendant effects on the economies.The study has shown that it has negatively affected the positive development of capital formation being one of the essential macroeconomic variables for a sustained economic development. EconJournals 2016 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/18235/1/IJEFI%20%206%201%202016%20271-278.pdf Abdullahi, Muhammad Mustapha and Abu Bakar, Nor'Aznin and Hassan, Sallahuddin (2016) Debt overhang versus crowding out effects: Understanding the impact of external debts on capital formation in theory. International Journal of Economics and Financial Issues, 6 (1). pp. 271-278. ISSN 2146-4138 http://www.econjournals.com/index.php/ijefi/article/view/1562 |
| spellingShingle | HJ Public Finance Abdullahi, Muhammad Mustapha Abu Bakar, Nor'Aznin Hassan, Sallahuddin Debt overhang versus crowding out effects: Understanding the impact of external debts on capital formation in theory |
| title | Debt overhang versus crowding out effects: Understanding the impact of external debts on capital formation in theory |
| title_full | Debt overhang versus crowding out effects: Understanding the impact of external debts on capital formation in theory |
| title_fullStr | Debt overhang versus crowding out effects: Understanding the impact of external debts on capital formation in theory |
| title_full_unstemmed | Debt overhang versus crowding out effects: Understanding the impact of external debts on capital formation in theory |
| title_short | Debt overhang versus crowding out effects: Understanding the impact of external debts on capital formation in theory |
| title_sort | debt overhang versus crowding out effects understanding the impact of external debts on capital formation in theory |
| topic | HJ Public Finance |
| url | https://repo.uum.edu.my/id/eprint/18235/1/IJEFI%20%206%201%202016%20271-278.pdf |
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