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Djibouti'S External Public Debt: Sustainability And Impact On Economic Growth
[La Dette Publique Extérieure De Djibouti : Soutenabilité Et Impact Sur La Croissance Économique]

Author

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  • Abdelouahab MAAROUF

    (UM5 - Université Mohammed V de Rabat [Agdal])

  • Omar AHMED

    (UM5 - Université Mohammed V de Rabat [Agdal])

Abstract

This report examines the effect of external public debt on economic growth in the Republic of Djibouti based on autoregressive distributed lag model (ARDL) during the period 1987 - 2017. The results show a positive and significant effect of debt on economic growth when considered in nominal terms. This effect becomes less significant and statistically insignificant when estimating the net present value of the debt. These results suggest that, contrary to intuition and theory, the use of concessional financing is no more timely and effective than floating and more restrictive borrowing.

Suggested Citation

  • Abdelouahab MAAROUF & Omar AHMED, 2021. "Djibouti'S External Public Debt: Sustainability And Impact On Economic Growth [La Dette Publique Extérieure De Djibouti : Soutenabilité Et Impact Sur La Croissance Économique]," Working Papers halshs-03280083, HAL.
    • Handle: RePEc:hal:wpaper:halshs-03280083
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03280083
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