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2 claims from 1 paper

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

   The paradox of strong institutions: when better governance intensifies public debt’s drag on economic growth in Heavily Indebted Poor Countries (HIPCs) in Africa

   Nguluwe and Chigaru · Research in Globalization · 2026

   The study estimates debt thresholds for growth in Africa's heavily indebted poor countries over 2000–2023 and finds that stronger institutions amplify, rather than reduce, debt's negative effect on growth.

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   1. UncheckedIn African heavily indebted poor countries, the study finds a nonlinear debt–growth link, with public debt of about 22% (of GDP) as the overall threshold.“The results confirm a nonlinear relationship between debt and growth, with an overall public debt threshold of about 22%.”
   2. UncheckedIn African HIPCs, debt thresholds of 25% (low-income) and 22% (resource-intensive) were found; none for lower-middle-income or non-resource-intensive groups.“Sub-group analysis shows thresholds of 25% for low-income countries and 22% for resource-intensive countries, while no significant nonlinear relationship is detected for lower-middle-income or non-resource-intensive countries.”