Effect of External Debt on Sustainable Economic Development in Emerging Economies of Sub-Sahara Africa

Abstract

The study examined the effect of external debt on sustainable economic development in emerging economies of Sub-Sahara Africa from 2013-2024. Measured by bilateral and multilateral debt, results revealed that multilateral debt has a positive significant effect on the human capital index (HDI), whereas bilateral debt had no significant effect. The study recommends that governments prioritize concessional loans from multilateral institutions like the World Bank and IMF while linking bilateral loans specifically to capital ventures to ensure funds enhance human capital.

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