SUSTAINABILITY OF MENA PUBLIC DEBT AND THE MACROECONOMIC IMPLICATIONS OF THE RECENT GLOBAL FINANCIAL CRISIS
Simon Neaime ()
Middle East Development Journal (MEDJ), 2010, vol. 02, issue 02, 177-201
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.
Keywords: MENA; debt; budget deficits; sustainability (search for similar items in EconPapers)
References: View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wsi:medjxx:v:02:y:2010:i:02:n:s1793812010000228
Ordering information: This journal article can be ordered from
Access Statistics for this article
Middle East Development Journal (MEDJ) is currently edited by Lyn Squire
More articles in Middle East Development Journal (MEDJ) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().