The determinants of external debt service in Africa

Authors

Okorie A. Uchendu

Publisher

Central Bank of Nigeria, Research Department

Keywords

External Debt, Debt service, Sub-Saharan Africa, External Debt Service

Abstract

The paper investigated how changes in commodity prices, exchange and interest rates, and terms of trade affect external debt service. The paper employed capital recovery theory and regression analysis in evaluating a model for Sub-Saharan Africa as a whole, and Nigeria, Ghana, Cote d'Ivoire and Egypt. The results of the study confirmed empirically the widely held view that increase in commodity prices enhances the ability of the countries in the region to service their external debts.

Issue

32

Volume

1

Recommended Citation

Uchendu, Okorie A. (1994). The determinants of external debt service in Africa. CBN Economic and Financial Review, 32(1). 34 - 46.