期刊名称：International Journal of Academic Research in Business and Social Sciences
电子版ISSN：2222-6990
出版年度：2018
卷号：8
期号：11
页码：1256-1264
DOI：10.6007/IJARBSS/v8-i11/5167
语种：English
出版社：Human Resource Management Academic Research Society
摘要：West Africa countries had been ranked among the poorest sub-regions in the world due to inadequate capital to bridge the gap between savings and investments. The scholars suggested foreign capital flows especially external debt will solve this chronic problem. This study employed panel data from 1980 to 2015 to investigate causal effect between external debt and economic growth among ECOWAS member countries using Debt Overhang Theory. The result shows the existence of long and short run causality between external debt and economic growth economic integrated member countries. We concluded the availability of this foreign capital flows (External debt) will stimulate investments if it is judiciously used productively. A main challenge to the policy makers is ensuring efficiency in delivery of services and increased productivity of public investments and eradication of corruption. In addition, creating enable environment and political will to spur investor confidence for both local and foreign investments.
