 Debt and economic growth in CEMAC: An empirical threshold model analysisEconStor Preprints from ZBW - Leibniz Information Centre for Economics Abstract: Since the beginning of year 2026 some of CEMAC countries even those considered as the most prosperous like Cameroon use the external debt extensively until to finance the public expenditures as the country’s national budget. Considering the current debate on debt dynamics into the area this paper aims investigating the relationship between debt and economic growth. Once more in investigating this relationship the literature in general fails to design a parcimonious model where most of the parameters are significant. Then to overcome this gap we use here a statiscal model limited to financial series. From an empirical side, we use a nonlinear short-run adjustment of a STR (Smooth Transition Regression) form for the CEMAC zone as a whole between 2004-2025. According to our results, we support the Old literature of a positive association between public debt and growth. Then the CEMAC zone as a whole is a supportive case where the Keynesian view of the economy holds as this have been advocated in earlier developments on the same area. The main Recommendation of this study is that his members States should avoid the use of external debt as this has been done considerably into the area since the beginning of this year. Keywords: Public Debt; External Debt; Economic growth; Keynesian thought; STR Model; CEMAC (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:zbw:esprep:344074 Access Statistics for this paper More papers in EconStor Preprints from ZBW - Leibniz Information Centre for Economics Contact information at EDIRC. |
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