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Dette publique, qualité institutionnelle et croissance économique dans les pays de la région MENA : analyse par la méthode des moments généralisés
[Public debt, institutional quality and economic growth in MENA countries: a GMM approach]

Author

Listed:
  • Boukhatem, Jamel
  • Kaabi, Malèk

Abstract

Despite the diversity of theoretical studies, the problematic of the public debt – economic growth relationship remains a controversial issue. The aim of the paper is to complement the existing evidence focusing on MENA countries. Using the efficient system-GMM estimators, our results show a non-linear relationship between public debt and growth. When public debt to GDP lies below the threshold of 15%, public debt boosts economic growth. The results of robustness tests show that public debt stimulates economic conditions in the countries with sound macroeconomic policies and stable institutions.

Suggested Citation

  • Boukhatem, Jamel & Kaabi, Malèk, 2015. "Dette publique, qualité institutionnelle et croissance économique dans les pays de la région MENA : analyse par la méthode des moments généralisés
    [Public debt, institutional quality and economic g
    ," MPRA Paper 65756, University Library of Munich, Germany, revised 23 Jul 2015.
  • Handle: RePEc:pra:mprapa:65756
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    File URL: https://mpra.ub.uni-muenchen.de/65756/5/MPRA_paper_65756.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    public debt; threshold effect; institutional quality; panel data; GMM;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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