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https://doi.org/10.5089/9781484306444.001

has been cited by the following article:

• TITLE: Debt and Growth in West African Economic and Monetary Union Countries (WAEMU): The Role of Institutional Quality

  AUTHORS: Kacou Firmin Croi, Adama Diaw

  KEYWORDS: Debt, Institutions, Economic Growth, Threshold

  JOURNAL NAME: Modern Economy, Vol.11 No.9, September 21, 2020

  ABSTRACT: This paper examines the role of institutional quality in the relationship between debt and growth in the West African Economic and Monetary Union (WAEMU) over the period 1980-2019. We used a combination of models. The model of Hansen (1999) and the models of Brambor et al., (2006) and that of Esarey & Sumner (2018). The results of the direct relationship between debt and growth indicate a debt threshold of 54.50% of GDP. The results also show that, below this threshold, debt has a positive effect on growth, but, above that threshold, the effect is negative. The results also show that taking into account the quality of institutions in the relationship between debt and growth has a positive and significant net effect on growth. This result highlights the important and essential role of the quality of institutions in debt management.