The impact of sovereign credit rating on economic growth in selected Sub-Saharan African countries
| dc.contributor.advisor | Makhetha-Kosi, P | |
| dc.contributor.author | Kopolo, Yanga | |
| dc.date.accessioned | 2026-09-01T12:23:12Z | |
| dc.date.available | 2026-09-01T12:23:12Z | |
| dc.date.issued | 2025-08-25 | |
| dc.description.abstract | This study investigates the impact of sovereign credit rating on economic growth for the period 2002-2022 in the selected sub-Saharan African countries. Panel data techniques, namely Pooled OLS, random effects, and fixed effects models, were employed. The findings of the Hausman test showed that the fixed effects model is appropriate for the study, and the results of the fixed effects model showed that sovereign credit rating has negative impact on economic growth, though the impact is not significant. However, gross fixed capital formation and government expenditure positively impact economic growth, and the relationships are statistically significant. Even though lending interest rate positively impacts economic growth, the impact is not significant. The policy recommendations are that policy makers should improve economic elements such as fiscal discipline and debt management to lessen vulnerability to rating downgrades. However, even though this study found an insignificant relationship between sovereign credit rating and economic growth, strong elements such as improvement of fiscal discipline may improve credit ratings and borrowing costs, thus indirectly increasing economic growth. In addition, governments in the sub-Saharan region should create a conducive environment which attracts investors, particularly foreign direct investment. The ability for the region to attract foreign direct investment could influence job creation which ultimately assists the region to achieve economic growth. | |
| dc.identifier.uri | http://hdl.handle.net/20.500.11837/5082 | |
| dc.language.iso | en | |
| dc.publisher | University of Fort Hare | |
| dc.subject | Credit ratings. | |
| dc.subject | Economics | |
| dc.subject | ||
| dc.subject | Africa, Sub-Saharan -- Economic conditions | |
| dc.title | The impact of sovereign credit rating on economic growth in selected Sub-Saharan African countries | |
| dc.type | Thesis | |
| eperson.orcid | 0000-0002-6197-7160 |