The Experts below are selected from a list of 33666 Experts worldwide ranked by ideXlab platform
Augustin Kwasi Fosu - One of the best experts on this subject based on the ideXlab platform.
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Implications of the External Debt-servicing Constraint for Public Health Expenditure in Sub-Saharan Africa
Oxford Development Studies, 2008Co-Authors: Augustin Kwasi FosuAbstract:The paper explores the implications of the External Debt-servicing constraint for public health spending in sub-Saharan Africa (SSA), where the health challenges have been great and Debt servicing particularly burdensome. Using 1975-94 5-year panel data for 35 African countries, the study finds that although actual Debt servicing has little impact, a binding Debt-servicing constraint that reflects the Debt burden would shift expenditure away from health. Although increases in External aid and constraints on the government executive tend to divert spending in favour of health, the Debt-burden effect is dominant. The paper also uncovers an upward trend in public health spending, a result that appears to contradict the popular belief that the structural adjustment programmes undertaken in many SSA countries as of the 1980s may have reduced government expenditure on health.
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Fiscal Allocation for Education in Sub-Saharan Africa: Implications of the External Debt Service Constraint
World Development, 2007Co-Authors: Augustin Kwasi FosuAbstract:Summary Increasing attention is now being accorded to the importance of education within the framework of endogenous growth. Meanwhile, External Debt servicing has appeared as a major constraint in many developing countries, especially in sub-Saharan Africa (SSA), raising the concern that fiscal allocation for education may have been severely limited. Using five-year panel data over 1975–94 for 35 SSA countries, the paper sheds light on the implications of a binding Debt service constraint for the educational budget. While actual Debt service has little or no effect on education spending, predicted Debt service that reflects the Debt burden exhibits a substantial adverse impact. The analysis, furthermore, detects an upward trend in education expenditure, contrary to the popular belief that the structural adjustment programs undertaken in many SSA countries may have reduced expenditures going to the social sector including education. Thus, a number of SSA countries may have managed to circumvent the External Debt constraint, via Debt rescheduling, for example. The results also suggest that removing the Debt constraint is consistent with the Heavily InDebted Poor Country initiative to boost spending in the social sector.
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the External Debt servicing constraint and public expenditure composition evidence from african economies
Research Papers in Economics, 2007Co-Authors: Augustin Kwasi FosuAbstract:The paper explores the impact of a binding External Debt-servicing constraint on the sectoral composition of government expenditures in the economies of Africa, where this constraint has traditionally been most prevalent. Applying seemingly unrelated regr
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The External Debt-Servicing Constraint and Public-Expenditure Composition in Sub-
2007Co-Authors: Saharan Africa, Augustin Kwasi FosuAbstract:The paper explores the impact of a binding External Debt-servicing constraint on the sectoral composition of government expenditures in the economies of Africa, where this constraint has traditionally been most prevalent. Applying seemingly unrelated regression (SUR) to 1975-94 five-year panel data for 35 countries, the paper finds that the implied Debt service burden adversely affects the share of public spending in the social sector, with similar impacts on education and health. Despite evidence that such a burden might also negatively influence public investment, the deleterious implications of Debt servicing appear to be primarily a social-sector phenomenon. The partial elasticity on the sector's expenditure share is estimated at 1.5, which is by far the highest among all the explanatory variables considered, including External aid, whose estimated effect on the social sector is positive but with an elasticity of only 0.2. Aid also positively affects public investment with a similar elasticity of 0.2. Constraint on the executive exercises significant positive and negative impacts, respectively, on
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The External Debt-Servicing Constraint and Public Expenditure Composition: Evidence from African Economies
2007Co-Authors: Augustin Kwasi FosuAbstract:The paper explores the impact of a binding External Debt-servicing constraint on the sectoral composition of government expenditures in the economies of Africa, where this constraint has traditionally been most prevalent. Applying seemingly unrelated regression (SUR) to 1975-94 five-year panel data for 35 countries, the paper finds that the implied Debt service burden adversely affects the share of public spending in the social sector, with similar impacts on education and health. Despite evidence that such a burden might also negatively influence public investment, the deleterious implications of Debt servicing appear to be primarily a social-sector phenomenon. The partial elasticity on the sector's expenditure share is estimated at 1.5, which is by far the highest among all the explanatory variables considered, including External aid, whose estimated effect on the social sector is positive but with an elasticity of only 0.2. Aid also positively affects public investment with a similar elasticity of 0.2. Constraint on the executive exercises significant positive and negative impacts, respectively, on ...
Ricardo M Sousa - One of the best experts on this subject based on the ideXlab platform.
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External Debt composition and domestic credit cycles
Journal of International Money and Finance, 2021Co-Authors: Stefan Avdjiev, Stephan Binder, Ricardo M SousaAbstract:Abstract We investigate the empirical link between External Debt composition and domestic credit cycles. Using quarterly data for 40 countries between 1980 and 2015, we show that two dimensions of External Debt composition (ie instrument type and lending/borrowing sector) provide valuable information about the likelihood of domestic credit booms and busts. In particular, we find that a higher share of External bank lending in the form of bonds is associated with a greater likelihood of credit booms. Our results also reveal that credit busts tend to be associated with a lower share of interbank lending and a higher share of lending from banks to non-banks. Additionally, the empirical evidence shows that External Debt composition is a robust predictor of domestic credit booms and busts at a wide range of horizons. Thus, the information contained in the composition of External Debt can be used to construct a set of “early-warning” indicators, which can help policymakers in their management of credit cycles.
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External Debt composition and domestic credit cycles
Research Papers in Economics, 2017Co-Authors: Stefan Avdjiev, Stephan Binder, Ricardo M SousaAbstract:We assess the role of External Debt in shaping the dynamics of domestic credit cycles. Using quarterly data for 40 countries between 1980 and 2015, we examine four dimensions of External Debt composition: instrument, sector, currency and maturity. We show that the first two dimensions provide valuable information about the likelihood of credit booms and busts. In particular, we find that a higher share of External bank lending in the form of bonds is associated with a greater likelihood of credit booms. Our results also reveal that credit busts tend to be associated with a lower share of interbank lending and a higher share of lending from banks to nonbanks.
Paresh Kumar Narayan - One of the best experts on this subject based on the ideXlab platform.
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a panel data analysis of the military expenditure External Debt nexus evidence from six middle eastern countries
Journal of Peace Research, 2009Co-Authors: Russell Smyth, Paresh Kumar NarayanAbstract:While a number of studies examine the nexus between military expenditure and economic growth, little consideration has been give to the effect of military expenditure on External Debt. This article examines the impact of military expenditure and income on External Debt for a panel of six Middle Eastern countries - Oman, Syria, Yemen, Bahrain, Iran, and Jordan - over the period 1988 to 2002. The Middle East represents an interesting study of the effect of military expenditure on External Debt because it has one of the highest rates of arms imports in the world and it is one of the most inDebted regions in the world. The study first establishes whether there is a long-run relationship between military expenditure, income, and External Debt in the six countries using a panel unit root and panel cointegration framework and then proceeds to estimate the long-run and short-run effects of military expenditure and income on External Debt. The study finds that External Debt is elastic with respect to military expenditure in the long run and inelastic with respect to military expenditure in the short run. For the panel of six Middle Eastern countries, in the long run a 1% increase in military expenditure results in between a 1.1 % and 1.6% increase in External Debt, while a 1% increase in income reduces External Debt by between 0.6% and 0.8%, depending on the specific estimator employed. In the short run, a 1% increase in military expenditure increases External Debt by 0.2%, while the effect of income on External Debt is statistically insignificant.
Markus Bruckner - One of the best experts on this subject based on the ideXlab platform.
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commodity windfalls democracy and External Debt
The Economic Journal, 2012Co-Authors: Rabah Arezki, Markus BrucknerAbstract:We examine the effects that windfalls from international commodity price booms have on External Debt in a panel of 93 countries during the period 1970–2007. Our main finding is that increases in the international prices of exported commodity goods lead to a significant reduction in the level of External Debt in democracies but to no significant reduction in the level of External Debt in autocracies. To explain this finding, we show that in autocracies commodity windfalls lead to a statistically significant and quantitatively large increase in government consumption expenditures. In democracies government consumption expenditures did not increase significantl
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commodity windfalls democracy and External Debt
Research Papers in Economics, 2011Co-Authors: Rabah Arezki, Markus BrucknerAbstract:We examine the effects that revenue windfalls from international commodity price booms have on External Debt in a panel of 93 countries during the period 1970-2007. Our main finding is that increases in the international prices of exported commodity goods lead to a significant reduction in the level of External Debt in democracies, but to no significant reduction in the level of External Debt in autocracies. To explain this result, we show that in autocracies commodity windfalls lead to a statistically significant and quantitatively large increase in government expenditures. In democracies on the other hand government expenditures did not increase significantly. We also document that following commodity windfalls the risk of default on External Debt decreased in democracies, but increased significantly in autocracies.
Russell Smyth - One of the best experts on this subject based on the ideXlab platform.
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a panel data analysis of the military expenditure External Debt nexus evidence from six middle eastern countries
Journal of Peace Research, 2009Co-Authors: Russell Smyth, Paresh Kumar NarayanAbstract:While a number of studies examine the nexus between military expenditure and economic growth, little consideration has been give to the effect of military expenditure on External Debt. This article examines the impact of military expenditure and income on External Debt for a panel of six Middle Eastern countries - Oman, Syria, Yemen, Bahrain, Iran, and Jordan - over the period 1988 to 2002. The Middle East represents an interesting study of the effect of military expenditure on External Debt because it has one of the highest rates of arms imports in the world and it is one of the most inDebted regions in the world. The study first establishes whether there is a long-run relationship between military expenditure, income, and External Debt in the six countries using a panel unit root and panel cointegration framework and then proceeds to estimate the long-run and short-run effects of military expenditure and income on External Debt. The study finds that External Debt is elastic with respect to military expenditure in the long run and inelastic with respect to military expenditure in the short run. For the panel of six Middle Eastern countries, in the long run a 1% increase in military expenditure results in between a 1.1 % and 1.6% increase in External Debt, while a 1% increase in income reduces External Debt by between 0.6% and 0.8%, depending on the specific estimator employed. In the short run, a 1% increase in military expenditure increases External Debt by 0.2%, while the effect of income on External Debt is statistically insignificant.
