Inclusive Human Development in Pre-Crisis Times of Globalisation-Driven Debts

African Development Review, 27(4), pp. 428-442 (2015)

21 Pages Posted: 15 Dec 2014 Last revised: 18 Dec 2015

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Uchenna Efobi

Covenant University

Ibukun Beecroft

Covenant University

Date Written: December 15, 2014

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.

Keywords: Debts; globalisation; inequality; inclusive development; Africa

JEL Classification: E60; F40; F59; D60; O55

Suggested Citation

Asongu, Simplice and Efobi, Uchenna and Beecroft, Ibukun, Inclusive Human Development in Pre-Crisis Times of Globalisation-Driven Debts (December 15, 2014). African Development Review, 27(4), pp. 428-442 (2015). Available at SSRN: https://ssrn.com/abstract=2538319 or http://dx.doi.org/10.2139/ssrn.2538319

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Uchenna Efobi

Covenant University ( email )

P.M.B. 1023
Km 10 Idiroko road
Ota, Ogun State 234
Nigeria
+48036273494 (Phone)

Ibukun Beecroft

Covenant University ( email )

Canaanland
Km 10 Idiroko road
Ota, 24001
Nigeria
+2348135537772 (Phone)

HOME PAGE: http://covenantuniversity.edu.ng/Profiles/Beecroft-Ibukun#.U-orX5F0U6U

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