EFFECT OF DEBT ON ECONOMIC GROWTH OF EAST AFRICAN REGION

This research study established the effect of debt on economic growth East African region in view an upsurge level debts many countries continent. In order to achieve objectives, a methodology framework panel autoregressive distributed-lag (Panel ARDL) was undertaken. The answered following questions: What is multilateral institutions region? from development financial internal For purposes employed descriptive design. Several econometrics methods: pooled mean group, dynamic fixed effects and also allow for common correlated effects. focused relied secondary data obtained World Bank website, ADI WDI website. A checklist developed based questions used collect values variables corresponding period under each country consideration. time series covered 2000-2020. organized through excel later imported E-views 12 software analysis. Regression, statistics analytic statistical methods were analytical process results presented tables, graphs figures clarity ease understanding. findings reveal that have significant impact while insignificant. Moreover, all found negative relationship with Africa positive countries. suggested need respective region’s governments establish adopt optimal balance between debt, DFIs domestic maintain steady growth. With having GDP indication crowding-out thus strike borrowing would not negatively affect private investments Keyword: Debt, Domestic External Multilateral debts, Economic CITATION: Gichigo, M. G., & Muturi, W. (2023). Effect region. Strategic Journal Business Change Management, 10 (2), 307 –328.