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Inclusive human development in pre-crisis times of globalisation-driven debts

Author

Listed:
  • Simplice A. Asongu

    (Yaoundé/Cameroon)

  • Uchenna R. Efobi

    (CEPDeR, Covenant University, Ota, Nigeria)

  • Ibukun Beecroft

    (CEPDeR, Covenant University, Ota, Nigeria)

Abstract
The paper verifies the Azzimonti et al. (2014) conclusions on a sample of 53 African countries for the period 1996-2008. Authors of the underlying study have established theoretical underpinnings for a negative nexus between rising public debt and inequality in OECD nations. We assess the effects of four debt dynamics on inequality adjusted human development. Instrumental variable and interactive regressions were employed as empirical strategies. Two main findings were established which depend on whether debt is endogenous to or interactive with globalisation. First, when external debt is endogenous to globalisation, the effect on inclusive human development is negative, whereas when it is interactive with globalisation, the effect is positive. This may reflect the false economics of pre-conditions. The magnitudes of negative estimates from endogenous related effects were higher than the positive marginal interactive effects. Policy implications were discussed.

Suggested Citation

  • Simplice A. Asongu & Uchenna R. Efobi & Ibukun Beecroft, 2014. "Inclusive human development in pre-crisis times of globalisation-driven debts," Research Africa Network Working Papers 14/024, Research Africa Network (RAN).
    • Handle: RePEc:abh:wpaper:14/024
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    More about this item

    Keywords

    Debts; globalisation; inequality; inclusive development; Africa;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • D60 - Microeconomics - - Welfare Economics - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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