IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Sustainability Of Mena Public Debt And The Macroeconomic Implications Of The Recent Global Financial Crisis

  • SIMON NEAIME

    ()

    (Department of Economics, American University of Beirut, Bliss Street, Hamma, P. O. Box 11 0236 Beirut, Lebanon)

Registered author(s):

    In the wake of the recent US financial crisis and after the accumulation of sizeable public debts, especially in the emerging MENA countries of Egypt, Jordan, Morocco, Tunisia, and Turkey, the financial distress of the public sector has become a major source of concern for policymakers in the region. Using time series econometric tests, and the Present Value Constraint model, this study examines the sustainability of MENA public debt. The empirical results point to strong sustainability of fiscal policies in Tunisia, weak sustainability in Egypt, mixed results for Morocco, and unsustainable debt and fiscal policies in Jordan and Turkey. It is argued that the acceleration of fiscal reforms in the latter group of MENA countries is urgently needed; otherwise, those countries may experience further increases in an already large public debt, and more pressure on exchange and interest rates, with further macroeconomic imbalances. It is also argued that the recent global financial crisis is expected to put further strains on Jordan's debt sustainability given its limited fiscal space and high debt to GDP ratio.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.worldscinet.com/cgi-bin/details.cgi?type=pdf&id=pii:S1793812010000228
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: http://www.worldscinet.com/cgi-bin/details.cgi?type=html&id=pii:S1793812010000228
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Middle East Development Journal.

    Volume (Year): 02 (2010)
    Issue (Month): 02 ()
    Pages: 177-201

    as
    in new window

    Handle: RePEc:wsi:medjxx:v:02:y:2010:i:02:p:177-201
    Contact details of provider: Web page: http://www.worldscinet.com/medj/medj.shtml

    Order Information: Email:


    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:wsi:medjxx:v:02:y:2010:i:02:p:177-201. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.