DETTE PUBLIQUE EXTÉRIEURE ET CROISSANCE ÉCONOMIQUE EN RÉPUBLIQUE DÉMOCRATIQUE DU CONGO (RDC)

EXTERNAL PUBLIC DEBT AND ECONOMIC GROWTH IN THE DEMOCRATIC REPUBLIC OF CONGO (DRC)

François Kazadi Ntita, Jean de Dieu Ntanga Ntita and Jean Ntita Ntita

MPRA Paper from University Library of Munich, Germany

Abstract: The purpose of this article is to determine the effect of external public debt on the economic growth of the Democratic Republic of Congo. To achieve this objective, we used the error-correction model (Engle and Granger, 1987), estimated by the Least Squares method over a period from 1981 to 2015. The results indicate a nonlinear relationship between external public debt and economic growth, as well as an optimal threshold of 22.5 % of GDP. The external public debt has a positive effect on the economic growth of the DRC for any debt below this threshold. Therefore, to sustainably promote economic growth in the DRC, the management of external public debt will need to focus on good governance.

Keywords: Public external debt; economic growth; LS; DRC. (search for similar items in EconPapers)
JEL-codes: C22 H63 O11 O55 (search for similar items in EconPapers)
Date: 2019, Revised 2019
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:92903

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