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External Indebtedness and Economic Growth in the Maghreb Countries

Author

Listed:
  • Esharif Adnan Ahmed

    (University of Sfax, Faculty of Economics and Management of Sfax, Tunisia.)

  • Saleh Imen

    (University of Sfax, Faculty of Economics and Management of Sfax, Tunisia.)

Abstract

The objective of this article is to study the nature of the relationship between external indebtedness and economic activity. This work will make it possible to know the effect of the external debt on the economic performance in the Maghreb countries (Tunisia, Algeria and Morocco), which will allow the authorities to lay new foundations in the orientation of the external debt. This study sets the general objective of expressing the linear relationship between indebtedness and economic growth in the three Maghreb countries: Tunisia, Algeria and Morocco between 1970 and 2018, i.e. a total of T=49 observations per countries (N=3). So, in sum, our model allows us to affirm that the impact of debt on the growth of the 3 Arab Maghreb countries is positive and not significant. This result means that in this segment, debt has no direct impact on growth.

Suggested Citation

  • Esharif Adnan Ahmed & Saleh Imen, 2024. "External Indebtedness and Economic Growth in the Maghreb Countries," Zagreb International Review of Economics and Business, Sciendo, vol. 27(2), pages 101-132.
    • Handle: RePEc:vrs:zirebs:v:27:y:2024:i:2:p:101-132:n:1005
    DOI: 10.2478/zireb-2024-0019
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    External indebtedness; economic growth; ARDL;
    All these keywords.

    JEL classification:

    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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