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Crise de la dette et détresse sociale du peuple congolais
[Debt crisis and social distress of the Congolese]

Author

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  • Izu, Akhenaton

Abstract

The objective of this paper is to highlight the idea according to wish the current misery of the DRC would be mainly dependent on the debt crisis of the years 1970-1980. To analyze this problem, the econometric approach was privileged and more precisely the cointegration. By the cointegration, one seeks to know if there is a long-term relation between the debt in% of the GDP and the GDP per capita. After deepened analyses, it was found that the weight of the external debt, with through the ousting of the welfare expenditures and the investments, had a negative effect on the population well-being. The undertaken studies reveal when the debt in % of the GDP increases by 10%, the GDP per capita decreases by 6.5% in short-term and by 23% in long-term.

Suggested Citation

  • Izu, Akhenaton, 2014. "Crise de la dette et détresse sociale du peuple congolais [Debt crisis and social distress of the Congolese]," MPRA Paper 64186, University Library of Munich, Germany, revised 05 Feb 2015.
    • Handle: RePEc:pra:mprapa:64186
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    References listed on IDEAS

    as
    1. Alexandru Minea & Patrick Villieu, 2010. "Dette publique, croissance et bien-être : une perspective de long terme," Post-Print halshs-00672605, HAL.
    2. Krugman, Paul, 1988. "Financing vs. forgiving a debt overhang," Journal of Development Economics, Elsevier, vol. 29(3), pages 253-268, November.
    3. Sachs, J.D., 1989. "New Approaches To The Latin American Debt Crisis," Princeton Studies in International Economics 174, International Economics Section, Departement of Economics Princeton University,.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Well-being; Cointegration; External debt; Investments; Democratic Republic of Congo.;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • D60 - Microeconomics - - Welfare Economics - - - General
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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