The Impact of External Debt to Growth in Kenya: 1980--2000
Abstract
This research paper assess the linear impact of external debt on growth in
Kenya using a dataset that spans the period 1980-2000. The results are
generally robust in econometric regressions using simple OLS methodology
across the two different debt indicators employed. The paper finds that the
impact of external debt on Kenya's economic growth is negative and
significant. The paper's findings also suggest that the average impact of debt
on growth becomes negative at about 251.4-310.4 per cent of exports and
71.2-87.3 per cent of GDP. The paper finds it difficult to fit an inverted Ushaped
non-linear specification for the panel data used.
Sponsorhip
The University of NairobiPublisher
Department of Economics