Assessment of the Causal Effects of Public Debt and Control of Corruption on Budget Expenditure Performance of Oil-Producing African Countries

Abstract

This study investigated the effect of public debt and control of corruption on budget expenditure performance of oil producing countries in Africa. Specifically, the study examined the effect of public debt on budget expenditure performance of oil producing countries in Africa and investigated the moderating effect of control of corruption on the relationship between public debt and budget expenditure performance of oil producing countries in Africa. The study adopted expo-facto research design. Census sampling technique was used since all the 18 oil producing countries in Africa were included in the study. Data gathered for this study was analyzed based on quantitative econometric techniques such as descriptive analysis, correlation analysis and panel regression analysis. The study found that public debt has a positive but insignificant effect on the government final consumption expenditure of oil-producing countries in Africa, with a coefficient of 0.0119 and a probability value of 0.821 (>0.05). Also, when examining the relationship between public debt and budget expenditure performance with the moderating variable of control of corruption, the interaction effect was found to be positive but insignificant. The coefficient of 0.0253479 with a probability value of 0.809 (>0.05) suggests that the moderating effect of control of corruption on the relationship between public debt and budget implementation performance is not statistically significant. From the findings made, it was established that public debt maintained a positive effect on budget expenditure performance.