SOGEI website background

Impact of corruption on Public Debt: evidence from Sub-Saharan African Countries

This paper investigates the impact of corruption on public debt on a panel of 29 Sub Saharan African countries for the period 2000 – 2015 using the system generalized method-of-moment (GMM) estimator. Whereas a large literature agrees on the damaging nature of corruption for any economy, few quantitative studies have explicitly test the effect of corruption on public debt. This study aims to address this gap in the literature by providing an empirical study on how corruption affect public debt in Sub-Saharan African countries. Results show that corruption has a positive effect on public debt in the sample countries. In policy terms, Sub-Saharan African countries must intensify the fight against corruption in order to make their public spending more efficient and especially to reduce the sovereign debt.