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Periodical article | Leiden University catalogue | WorldCat |
Title: | Debt relief and credit to the private sector in African countries |
Authors: | Harrabi, Sana Bousrih, Lobna Salisu, Mohammed |
Year: | 2007 |
Periodical: | African Development Review |
Volume: | 19 |
Issue: | 3 |
Pages: | 469-480 |
Language: | English |
Geographic term: | Africa |
Subjects: | debt relief financial policy credit private sector History and Exploration Economics and Trade Development and Technology |
External link: | https://onlinelibrary.wiley.com/doi/10.1111/j.1467-8268.2007.00171.x/pdf |
Abstract: | The purpose of this paper is to empirically investigate the link between debt relief and credit to the private sector in African countries using a panel method over the period 1988-2004. The motivation for investigating the relationship between debt relief and credit to the private sector follows J. Christensen's (2004) hypothesis that domestic debt has a negative impact on the credit to the private sector; therefore debt relief is expected to alleviate domestic debt and thereby create space for domestic credit which, if it is mostly constituted of public sector credit, crowds out credit to the private sector. The paper concludes that debt relief has a significant and positive effect on credit to the private sector in the short term. In the long term, debt relief has positive effects on domestic credit to the private sector only when associated with good initial institutional quality. Bibliogr., notes, ref., sum. [Journal abstract] |