Harnessing resource rents for debt reduction: A study of oil-rich Sub-Saharan African countries
This paper examines the effect of oil resource rents and economic complexity on the debt burden of five oil-rich Sub-Saharan African countries between 1995 and 2019. A panel autoregressive distributed lag estimation technique was used to estimate the models; the results reveal a negative an...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Faculty of Economics, Belgrade
2025-01-01
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| Series: | Ekonomski Anali |
| Subjects: | |
| Online Access: | https://doiserbia.nb.rs/img/doi/0013-3264/2025/0013-32642544035A.pdf |
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| Summary: | This paper examines the effect of oil resource rents and economic complexity
on the debt burden of five oil-rich Sub-Saharan African countries between
1995 and 2019. A panel autoregressive distributed lag estimation technique
was used to estimate the models; the results reveal a negative and
significant impact of economic complexity and natural resources rents on
debt services of the selected oil-rich African countries. The paper also
shows that using natural resources rents to enhance the complexity of the
economy reduces public debt burdens. The implication is that greater
economic complexity and natural resources rents may reduce the tendency of
oil-rich countries to experience debt crises in the long run. The paper
recommends that a greater deployment of natural resources rents for
productive purposes may create a conducive investment climate, reducing the
incidence of debt. Finally, policy makers in these economies should take
advantage of natural resources rents to diversify their economies in order
to deepen economic complexity and reduce the burden of public debt. |
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| ISSN: | 0013-3264 1820-7375 |