TITLE:
Determining Optimal Thresholds for Macroeconomic Indicators in DRC (Congo). An Analysis of Macroeconomic Convergence Criteria in SADC, COMESA and ECCAS
AUTHORS:
William Pambu Pambu
KEYWORDS:
Macroeconomic Indicators, DRC, Threshold Model
JOURNAL NAME:
Theoretical Economics Letters,
Vol.13 No.4,
August
11,
2023
ABSTRACT: The aim of this article is to determine for the DRC, the optimal levels
of four macroeconomic indicators (inflation, budget balance as a percentage of GDP,
public debt as a percentage of GDP and international reserves in months of
imports) used as convergence criteria in three Regional Economic Communities
(RECs), namely SADC, COMESA and ECCAS. The threshold
model is used as an empirical model to calculate the optimal level for each
indicator. The results suggest that the optimum levels of these indicators for
the DRC deviate significantly from the convergence criteria set by most of the
RECs of which the country is a member. This raises the question of the
relevance for the DRC of complying with these criteria, which would restrict
its scope for action, particularly to promote growth and development.