On measuring indebtedness of African countries

Since the 1950s, export credits have been an important source of finance in most African countries, where they allow more to be invested with less sacrifice of current consumption. This paper provides a framework for comprehensively measuring indebtedness and gives, therefore, a basis for setting ob...

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Main Authors: Nkamleu, G.B., Tsafack, R.
Format: Journal Article
Language:Inglés
Published: 2007
Subjects:
Online Access:https://hdl.handle.net/10568/92380
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author Nkamleu, G.B.
Tsafack, R.
author_browse Nkamleu, G.B.
Tsafack, R.
author_facet Nkamleu, G.B.
Tsafack, R.
author_sort Nkamleu, G.B.
collection Repository of Agricultural Research Outputs (CGSpace)
description Since the 1950s, export credits have been an important source of finance in most African countries, where they allow more to be invested with less sacrifice of current consumption. This paper provides a framework for comprehensively measuring indebtedness and gives, therefore, a basis for setting objective principles for debt reduction measures. The paper uses a stochastic frontier production function approach and the technical efficiency computation procedure to develop an indebtedness index for 46 African countries. Variations in indebtedness index are explained through a number of institutional, socio-political and geographical factors. The indebtedness index across African countries ranges from a minimum of 3.6% (South Africa) to a maximum of 92% (Zambia), with an average of 69%. Former French colonies exhibited higher indebtedness than former British, Portuguese, or Spanish colonies. Countries in the northern part of the continent are relatively more indebted, while those in the southern part have a lower indebtedness index. Countries which have experienced extended civil wars are generally less indebted. Finally, we measured a significantly higher indebtedness among those countries with dictatorial and corrupt governments.
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spelling CGSpace923802023-06-13T05:52:13Z On measuring indebtedness of African countries Nkamleu, G.B. Tsafack, R. external debt indebtedness index institutions Since the 1950s, export credits have been an important source of finance in most African countries, where they allow more to be invested with less sacrifice of current consumption. This paper provides a framework for comprehensively measuring indebtedness and gives, therefore, a basis for setting objective principles for debt reduction measures. The paper uses a stochastic frontier production function approach and the technical efficiency computation procedure to develop an indebtedness index for 46 African countries. Variations in indebtedness index are explained through a number of institutional, socio-political and geographical factors. The indebtedness index across African countries ranges from a minimum of 3.6% (South Africa) to a maximum of 92% (Zambia), with an average of 69%. Former French colonies exhibited higher indebtedness than former British, Portuguese, or Spanish colonies. Countries in the northern part of the continent are relatively more indebted, while those in the southern part have a lower indebtedness index. Countries which have experienced extended civil wars are generally less indebted. Finally, we measured a significantly higher indebtedness among those countries with dictatorial and corrupt governments. 2007-01 2018-04-25T15:07:53Z 2018-04-25T15:07:53Z Journal Article https://hdl.handle.net/10568/92380 en Limited Access Nkamleu, G.B. & Nanfosso, R.T. (2007). On measuring indebtedness of African countries. African Finance Journal, 9(1), 21-38.
spellingShingle external debt
indebtedness
index
institutions
Nkamleu, G.B.
Tsafack, R.
On measuring indebtedness of African countries
title On measuring indebtedness of African countries
title_full On measuring indebtedness of African countries
title_fullStr On measuring indebtedness of African countries
title_full_unstemmed On measuring indebtedness of African countries
title_short On measuring indebtedness of African countries
title_sort on measuring indebtedness of african countries
topic external debt
indebtedness
index
institutions
url https://hdl.handle.net/10568/92380
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