 Structural vulnerability and excessive public indebtedness in CFA Franc Zone countriesSèna Kimm Gnangnon Economic Modelling, 2013, vol. 35, issue C, 816-832 Abstract: This paper relies on the ‘institutional debt rule’ implemented in Franc Zone countries to assess whether the structural vulnerability of these countries matter for their probability to enter into excessive indebtedness. This structural vulnerability is measured by retrospective ‘Economic Vulnerability Index’ (EVI) recently computed jointly by the United Nations and Guillaumont and Cariolle (2011). We observe evidence that the impact of ‘EVI’ is non-linear with respect to the probability of these countries to engage into excessive indebtedness and that, this effect appears to be the same for the two monetary areas belonging to the CFA Franc Zone countries: a rise of EVI induces a higher probability of excessive debt and for higher EVI, this probability declines. Consequently, international community and more particularly international development institutions such as the Bretton Woods should take into account such vulnerability in their assessment of the adequate development policies and recommendations to these countries. Keywords: Structural vulnerability; Public debt; Unconditional logit model; Linear probability model (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:35:y:2013:i:c:p:816-832 DOI: 10.1016/j.econmod.2013.08.022 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
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