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2017 | 67 | 2 | 102-112
Article title

How Does Public Deficit Affect Public Investment in Senegal?

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EN
Abstracts
EN
This paper proposes an assessment of the non-linear relationship between public deficit and public investment in debt situation. We use an endogenous growth model, with productive public spending, that we test empirically using the interaction model of Brambor et al. (2002), over the period 1980-2015, in Senegal. The results of the estimates show a change in the regime of the relationship between public investment and public deficit for public debt level equal to 80% of GDP. When public debt is below this threshold, any increase in the deficit has an expansive effect on public infrastructure spending. When public debt is above the threshold of 80% of GDP, an increase in the deficit has a recessive effect on public investment.
Year
Volume
67
Issue
2
Pages
102-112
Physical description
Contributors
  • Department of Economics, Cheikh Anta Diop University, Dakar, Senegal, ndourse@yahoo.fr
References
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Document Type
article
Publication order reference
Identifiers
YADDA identifier
bwmeta1.element.psjd-0edb6e60-cb71-4688-9b52-ff2ade6688c5
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