Threshold effect in the relationship between external debt and energy access in sub-Saharan African countries: A dynamic panel threshold specification

Abstract

This paper investigates the relationship between external debt and energy access in the Sub-Saharan African countries over the period 1999–2021. Results from the dynamic panel threshold method indicates that the link between external debt and energy access is nonlinear. Moreover, the findings reveal a statistically negative relationship between external debt and energy access above the threshold of 5.04 %, beyond which external debt reduces energy access in SSA countries. Besides, results indicate that economic growth and trade openness enhance access to electricity. However, renewable energy consumption decreases energy access. This paper upholds the view that external debt should be kept to a reasonable level in order to avert the opposite effect on energy access.