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Title: |
Macroeconomic Adjustment and External
Dependency in Sub-Saharan Africa |
| Author: |
Nagarajan, P.;
Spears, A. |
| Author
Affiliation: |
U Prince Edward
Island |
| Source: |
International Economic Journal, Winter 1990, v. 4, no. 4, pp. 91-101 |
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Publication Date: |
Winter 1990 |
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Abstract: |
This paper examines the behavioral
parameters of the IS equations for eight countries in sub-Saharan
Africa. The empirical results show an overall destabilizing effect
rooted in the parameters of the IS functions. The study lends support to
the view that recourse to external financing, to balance the I-S gap in
the short-run, leads LDCs economies into a state of structural
dependency on foreign capital, entailing a reduction in domestic capital
formation and growth through an increased reliance on imports and an
inefficient allocation of domestic savings. |
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