Gildas Dohba Dinga

This study investigates the impact of external debt and corruption control on the economic prosperity of Southern African Development Community (SADC) countries, using the Legatum Prosperity Index as a comprehensive measure encompassing nine dimensions. The study employs various estimation techniques, including Driscoll-Kraay, instrumental variables, quantile-on-quantile regressions, and the Granger causality test. The findings indicate that external debt positively influences economic prosperity in the SADC region. Additionally, effective corruption control enhances this prosperity. Causality tests reveal a bidirectional relationship between external debt, economic prosperity, and corruption control. The study recommends strengthening anti-corruption agencies, initiating open data policies, implementing market reforms, and pursuing fiscal consolidation to promote debt sustainability and foster prosperity within the SADC region.

This study examines the impact of diverse sources of external finance, including official development aid (ODA), foreign direct investment (FDI), external debt, and remittances, on agronomic transformation in African economies from 2000 to 2022. Data is obtained from the World Development Indicators, and a plethora of estimation approaches is used, such as the Driscoll-Kraay, the fully generalized least squares, the quantile regression, and the generalized method of moments type sequential regression techniques. The outcomes reveal ample evidence of an augmenting effect of external debt and remittances on agronomic transformation in Africa. However, sub-regional comparisons demonstrate that the influence of remittances is insignificant for East African economies, while external debt has a negative impact on North African economies. Furthermore, FDI negatively affects agronomic transformation but fails to be significant for East and Southern African economies. Finally, ODA was generally positive but insignificant. External finance sources variably influence agronomic transformation, with outcomes shaped by regional contexts. The heterogeneity underscores the need for nuanced, region-specific policy frameworks. Policymakers should prioritize remittance channels and debt management to foster agronomic transformation while tailoring strategies to sub-regional dynamics. East and Southern Africa require cautious ODA utilization, and FDI policies should be redesigned to align with agricultural development goals.

Background/Objectives: The impact of government health spending and external debt on maternal mortality has been the subject of ongoing theoretical and empirical discussions. However, this relationship has remained controversial with no perspective on the moderating role of external debt on the government’s health expenditure and maternal mortality link. This study examines the moderating effect of external debt on the government’s health expenditure and maternal mortality relation using data from 13 Southern African economies spanning from 2000 to 2022. Methods: We employed the augmented mean group, the dynamic common correlation effect mean group, and the Driscoll–Kraay and Granger causality techniques to attain the study’s objective. Results: The outcome revealed that government health expenditure and external debt reduce maternal mortality in the Southern African Development Community (SADC) region. Equally, the magnitude of government health spending is moderated by external debt. The results revealed a bidirectional relation amidst maternal mortality and government health expenditure, and maternal mortality and external debt. Conclusions: The study recommends that policymakers within the SADC zone should avoid austerity measures and encourage expansionary measures in terms of spending, and the contraction of debt for capital investment in the health sector. This will enhance the delivery of health services within the zone and equally reduce the rate of maternal mortality that is still a major health concern within the sub-region.

Purpose: This study examines the effect of external debt and domestic capital formation on economic development in Sub-Saharan African (SSA) economies.Design/methodology/approach: Using the Dynamic Common Correlation Effects (DCCE) technique and the Driscoll and Kraay fixed-effect technique, this paper conducts a multidimensional assessment of external debt and domestic investment on economic development across a panel of 35 SSA countries from 1995 to 2018. The data utilized are sourced from the World Development Indicators (2021) and the United Nations Development Program (UNDP) database (2021).Findings: The results reveal that domestic investment has a positive impact on economic development in SSA countries, consistent across all three dimensions of the human development index (income, education and life expectancy). However, external debt exhibits an adverse effect on economic development, consistently yielding negative outcomes for life expectancy, education and income.Practical implications: Based on these findings, the authors recommend that SSA economies implement appropriate policies, such as reducing bureaucratic requirements and addressing corruption, to enhance domestic capital investment. Additionally, efforts should be directed toward channeling contracted debt into productive sectors like road construction and electricity provision.Originality/value: This study is among the first to assess the impact of domestic investment and external debt on the three dimensions of human development outlined by the UNDP. Furthermore, it employs a robust econometric method that considers cross-sectional dependence (CD).

This research assesses the effect of capital structure on the sustainability of Microfinance Institutions (MFIs) in Bamenda, Cameroon. We use panel data obtained from audited annual financial statements of fifteen (15) MFIs, comprising both member- and shareholder-owned MFIs in Bamenda, Cameroon from 2014 to 2020, and an ex-post facto causal research design. Debt, equity, grants, and retained earnings are used to capture capital structure, while Operational Self-Sufficiency is used as a proxy for sustainability. The Generalised Least Squares and the quantile-on-quantile techniques are used for data analysis. Our findings indicate a statistically significant negative relationship between debt, grants and financial sustainability of MFIs, while a statistically significant positive relationship is found between retained earnings and financial sustainability of MFIs. A positive, though statistically insignificant relationship is found between equity or share capital and MFI financial sustainability. The results are robust upon consideration of different quantiles. Based on the findings, MFIs in Cameroon should rely more on retained earnings and equity to be more financially sustainable. The findings additionally provide evidence relating to the shortcoming of grants in the financing of development initiatives.