The Determinants Of Public Debt In Sub-saharan Africa

The determinants of public debt in developing countries remain the focus of much attention among academics and policy makers. This paper introduces model uncertainty into an empirical study of continental public debt determinants. This is achieved by adopting a panel data model that applies to data from 30 countries in sub-Saharan Africa from 2011 to 2020. Using the generalized method of moments (GMM) and Random effects methodological approach the study confirms that negative relationships between public debt and economic growth exchange rate sub Saharan Africa. Our findings additionally indicate that government investment enhances the positive and significant association with public debt levels in the sampled countries. And also results suggest that, Budget balance and inflation have a positive contribution to public debt accumulation activity in sub Saharan Africa.

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