UUM Repository | Universiti Utara Malaysian Institutional Repository
FAQs | Feedback | Search Tips | Sitemap

Debt overhang versus crowding out effects: Understanding the impact of external debts on capital formation in theory


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

[img] PDF
Restricted to Registered users only

Download (358kB) | Request a copy

Abstract

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.

Item Type: Article
Uncontrolled Keywords: External debts, Debt Overhang, Crowding out Effects, Capital formation.
Subjects: H Social Sciences > HJ Public Finance
Divisions: School of Economics, Finance & Banking
Depositing User: Prof. Madya Dr. Nor Aznin Abu Bakar
Date Deposited: 26 Jun 2016 08:51
Last Modified: 26 Jun 2016 08:51
URI: http://repo.uum.edu.my/id/eprint/18235

Actions (login required)

View Item View Item