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
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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