Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/316037 
Year of Publication: 
2021
Citation: 
[Journal:] Review of Economics and Political Science (REPS) [ISSN:] 2631-3561 [Volume:] 6 [Issue:] 2 [Year:] 2021 [Pages:] 118-141
Publisher: 
Emerald, Bingley
Abstract: 
Purpose This paper aims to apply the debt sustainability framework using various ratios to review the current state of sovereign debt of Economic Community of West African States (ECOWAS) member countries. Design/methodology/approach Debt sustainability framework using various ratios (which include the present value approach, Country Policy and Institutional Assessment debt policy assessment ranking and solvency ratio of external debt) for the period 2010 and 2017 were used for the analysis to determine external debt sustainability and solvency of ECOWAS members. Findings The findings indicate that most ECOWAS countries are already turning at the unsustainable debt path and may renege in their debt obligations, thus creating a vicious cycle of external borrowing that could lead to capital flight. Originality/value This paper offers the empirical evidence to identify which of the ECOWAS countries are already at the threshold of external debt stress, and in the likelihood to renege on their debt obligations.
Subjects: 
Capital flows
Debt sustainability
Economic growth
ECOWAS
External debt
Solvency ratio
JEL: 
F210
H630
O430
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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