Global Journal of Human Social Science, E: Economics, Volume 22 Issue 1

© 2022. Alioum Hamadou, Mohammadou Nourou, Mohamadou Oumarou & Zakariyaou. This research/review article is distributed under the terms of the Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0). You must give appropriate credit to authors and reference this article if parts of the article are reproduced in any manner. Applicable licensing terms are at https://creativecommons.org/licenses/by-nc-nd/4.0/. Global Journal of HUMAN-SOCIAL SCIENCE: E Economics Volume 22 Issue 1 Version 1.0 Year 2022 Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Online ISSN: 2249-460x & Print ISSN: 0975-587X Public Debt and Private Investment in Subsaharan Africa By Alioum Hamadou, Mohammadou Nourou, Mohamadou Oumarou & Zakariyaou Université de Maroua Abstract- The purpose of this study is to analyze the effect of public debt on private investment in Sub- Saharan Africa (SSA). To this end, we proceed with the econometric estimation of the data for a panel of 43 SSA countries over the period 2000- 2018. All of this data comes from the World Bank (IDS, WDI, WGI) and the IMF (WEO). In order to achieve robust results, three estimation methods are used: the Ordinary Least Squares (OLS) method, the Ordinary Doubles Least Squares (ODLS) method and the Quantile regression method. All other things being equal, the results show that public debt reduces private investment because of credit rationing and higher taxes to honor debt services. However, we find that the debt from China is positively correlated with private investment. Therefore, to reconcile public debt and private investment, SSA countries need to implement appropriate policies that will ensure that public debt is used optimally to further stimulate private investment. Indeed, SSA countries must encourage and monitor the channeling of financial resources to productive activities likely to strengthen private investment. Keywords: public debt, private investment, OLS, ODLS, quantile regression, sub-saharan africa . GJHSS-E Classification: FOR Code: 149999 PublicDebtandPrivateInvestmentinSubsaharanAfrica Strictly as per the compliance and regulations of: