TITLE:
Effects of External Public Debt on Economic Growth: The Case of the Republic of Congo
AUTHORS:
Ngakosso Antoine, Etoka-Bekaaime Stanislas, Ngombi Arnode Rollfe
KEYWORDS:
External Debt, Economic Growth, Optimum Level, Non-Linearity, Quadratic
JOURNAL NAME:
Open Journal of Business and Management,
Vol.9 No.4,
July
29,
2021
ABSTRACT: The objective of this report is checking the being of an optimum level of
the external debt in republic of Congo on a going period of 1986 of 2015. The
non-linearity mold permitted estimating the degree of debt beyond which the all
accumulation of the debt constituting a hurdle to the economic growth. We have
reached to the inverted U-shaped relationship between the two variables, as it
had been proved empirically. Modeling leads to an optimal debt level of 21.6% of
GDP. The debt impact depends on its relative weight in GDP. The analysis also
allowed us to identify that some variables, selected a priori, could influence
economic growth in the republic of Congo.