The impact of governance on general government debt in lower-middle-income countries in Africa: A quantitative analysis | ||||
| مجلة السياسة والاقتصاد | ||||
| Volume 20, Issue 19, July 2023, Page 399-422 PDF (629.86 K) | ||||
| Document Type: مقالات سیاسیة واقتصادیة | ||||
| DOI: 10.21608/jocu.2023.186325.1247 | ||||
 View on SCiNiTO | ||||
| Author | ||||
شرين بشرى غالي  
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| أکاديمية السادات للعلوم الادارية | ||||
| Abstract | ||||
| Recent borrowing expansion has greatly increased the public debt of developing countries, as a result, the governance of debt has gotten considerable attention with the primary goal of ensuring that the government's financial commitments are satisfied. Consequently, the effect of governance on general government debt is empirically investigated in this study using the six Governance Indices of the “World Bank”. The study uses yearly time series data, with a focus on 17 African lower-middle-income countries from 2006 to 2021. The estimated approach “Dynamic System Generalised Method of Moments (System GMM)” is used. The study's empirical findings show that Government effectiveness” is statistically significant and has a positive coefficient, contrary to “Political Stability and Absence of Violence", "Regulatory Quality", and "Voice and Accountability" have statistically significant negative correlations with general government debt that signifies that debt lessens, implying that an increase in governance is related to lower levels of general government debt, highlighting the importance of governance in encouraging the effective use of government debt in these nations. | ||||
| Keywords | ||||
| Governance; Debt governance; General government debt; Lower-middle-income countries; Dynamic System Generalised Method of Moments (GMM) | ||||
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