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Keyword: debt servicing costs ×Clear all

1 claim from 1 paper

1. Economics, Econometrics and Finance › Fiscal Policies and Political Economy

   Exploring the linear and nonlinear effects of external debt on economic growth in Sub-Saharan Africa

   Mohamed and Mohamud · Cogent Economics & Finance · 2025

   Using panel data for 23 Sub-Saharan African countries from 2011 to 2021, the study finds external debt has a dual effect on growth and recommends sustainable borrowing aligned with repayment capacity.

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   1. UncheckedIn 23 Sub-Saharan African countries, external borrowing first supports growth but hinders it as debt rises, mainly through debt servicing costs.“Initially, external borrowing supports growth; however, as debt levels increase, it hinders growth, primarily due to the escalating costs of debt servicing.”