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2018 | 94 | 2 | 236-249
Article title

Financing the need for infrastructure in WAEMU countries through public debt

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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 and al. (2006), over the period 1980-2017, in WAEMU countries. 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 75% 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 75% of GDP, an increase in the deficit has a recessive effect on public investment.
Year
Volume
94
Issue
2
Pages
236-249
Physical description
References
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Document Type
article
Publication order reference
YADDA identifier
bwmeta1.element.psjd-eb8ebd3c-1176-4d4c-909d-61171b0809fc
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