Sumra, Shanaz (2016) The balance of payments constrained growth model with sustainable debt accumulation, interest payments and the terms of trade: evidence from Sub-Saharan Africa. [Working Paper]

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Abstract

The relevance of a demand-led growth model for long run economic growth is tested for the sub-Saharan African region using an augmented balance of payments constrained growth model which allows for sustainable debt accumulation, interest rate payments and the terms of trade movements. An autoregressive distributive lag (ARDL) model is used to estimate the model for 22 sub-Saharan African economies. Different specifications of the balance of payments constrained growth model are estimated and compared. The results indicate that the region was balance of payments constrained between the 1960 to 2014 period. In addition, the model which allows for sustainable debt accumulation and interest rate payments abroad best explained the growth experience of the region.

Item Type:	Working Paper
Uncontrolled Keywords:	balance of payments; constrained growth; debt; interest payments abroad; terms of trade; sub-Saharan Africa;
Subjects:	H Social Sciences > HG Finance
Faculty / School / Research Centre / Research Group:	Faculty of Business Faculty of Business > Institute of Political Economy, Governance, Finance and Accountability (IPEGFA) > Greenwich Political Economy Research Centre (GPERC)
Last Modified:	04 Aug 2021 16:33
URI:	http://gala.gre.ac.uk/id/eprint/14664

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