TOGBENU, Fo-kossi Edem and Kadanga, Mayo Takémsi Norris (2024): Un réexamen de l’effet de seuil de la dette publique sur la croissance économique en Afrique subsaharienne.
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Abstract
Our study aims to reexamine the relationship between public debt and economic growth in Sub-Saharan African countries over the period from 2000 to 2020. To achieve this, we have chosen to use a dynamic panel threshold model, recently developed by Seo and Shin (2016), to address various estimation issues, including reverse causality and endogeneity. Furthermore, differences among Sub-Saharan African countries in terms of development level, natural resource intensity, institutional quality, and the level of illicit financial flows are examined. The results reveal a U-shaped relationship between public debt and economic growth, indicating the existence of an optimal level of public debt at 58% of GDP for the entire sample. For the group of countries characterized by more developed economies, rich in natural resources in the region with a satisfactory Human Development Index (HDI), relatively better institutional quality, and higher illicit financial flows, a debt threshold of 74% is estimated. In contrast, for the group of countries characterized by lower dependence on natural resources, a lower HDI, less favorable institutional quality, and lower illicit financial flows, a debt threshold is estimated at 47%, significantly lower. These results highlight the diversity of optimal public debt thresholds based on the specific characteristics of Sub-Saharan African countries.
Item Type: | MPRA Paper |
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Original Title: | Un réexamen de l’effet de seuil de la dette publique sur la croissance économique en Afrique subsaharienne |
English Title: | A reevaluation of the threshold effect of public debt on economic growth in Sub-Saharan Africa |
Language: | French |
Keywords: | Public debt, economic growth, dynamic panel, Sub-Saharan Africa |
Subjects: | C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models H - Public Economics > H6 - National Budget, Deficit, and Debt > H63 - Debt ; Debt Management ; Sovereign Debt |
Item ID: | 120429 |
Depositing User: | Mr Mayo KADANGA |
Date Deposited: | 14 Mar 2024 06:56 |
Last Modified: | 14 Mar 2024 06:56 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/120429 |
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