Bericht

Public debt sustainability in the West African Monetary Zone

WAMZ countries have accumulated high levels of public debt less than two decades after the massive debt forgiveness effected under the Highly Indebted Poor Countries (HIPC) initiative. This has raised sustainability concerns as rising debt levels have the potential to create negative spillover effects and derail the macroeconomic convergence process in the Zone. This study examines the response of WAMZ countries to increases in public debt levels. Utilizing pooled OLS and panel fixed effects (FE) on annual data covering the period 2000 - 2018, the study shows positive response of primary balance to changes in the debt to output ratio across WAMZ countries, indicating that public debt were sustainable during the period. Results from the Panel Smooth Transition Regression (PSTR) model indicate significant positive non-linear response of primary balance to increases in the debt ratio below a threshold debt-to-GDP ratio of 90 percent. The study recommends the continuation of fiscal consolidation efforts aimed at enhancing revenue and rationalizing unproductive expenditures in all Member States.

Sprache
Englisch

Erschienen in
Series: WAMI Occasional Paper Series ; No. 17

Klassifikation
Wirtschaft
Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
National Deficit; Surplus
National Debt; Debt Management; Sovereign Debt
Thema
Public debt
primary balance
Panel Smooth Transition Regression
WAMZ

Ereignis
Geistige Schöpfung
(wer)
Egbuna, Ngozi Eunice
John-Sowe, Maimuna
Kargbo, Santigie M.
Bawa, Sani
Diallo, Ibrahima
Abubakari, Hissan
Odeniran, Olukayode S.
Mendy, Isatou
Sambola, Eric
Adams, Kormay
Ereignis
Veröffentlichung
(wer)
West African Monetary Institute (WAMI)
(wo)
Accra
(wann)
2019

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Bericht

Beteiligte

  • Egbuna, Ngozi Eunice
  • John-Sowe, Maimuna
  • Kargbo, Santigie M.
  • Bawa, Sani
  • Diallo, Ibrahima
  • Abubakari, Hissan
  • Odeniran, Olukayode S.
  • Mendy, Isatou
  • Sambola, Eric
  • Adams, Kormay
  • West African Monetary Institute (WAMI)

Entstanden

  • 2019

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