Dette publique, qualité institutionnelle et croissance économique dans les pays de la région MENA : analyse par la méthode des moments généralisés

Boukhatem, Jamel and Kaabi, Malèk (2015): Dette publique, qualité institutionnelle et croissance économique dans les pays de la région MENA : analyse par la méthode des moments généralisés.

Abstract

Despite the diversity of theoretical studies, the problematic of the public debt – economic growth relationship remains a controversial issue. The aim of the paper is to complement the existing evidence focusing on MENA countries. Using the efficient system-GMM estimators, our results show a non-linear relationship between public debt and growth. When public debt to GDP lies below the threshold of 15%, public debt boosts economic growth. The results of robustness tests show that public debt stimulates economic conditions in the countries with sound macroeconomic policies and stable institutions.

• Item Type: MPRA Paper
• English Title: Public debt, institutional quality and economic growth in MENA countries: a GMM approach
• Language: French
• Keywords: public debt, threshold effect, institutional quality, panel data, GMM
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models; F - International Economics > F3 - International Finance > F34 - International Lending and Debt Problems; H - Public Economics > H6 - National Budget, Deficit, and Debt > H63 - Debt ; Debt Management ; Sovereign Debt; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth

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