Public debt and growth in selected West African countries: Implications for economic integration
Based on an eclectic approach, we examined the public debt – growth nexus in selected SSA countries. Panel regression results indicate that debt/GDP and rates of inflation had negative relationship with the growth in real GDP and its per capita measure for SSA. For the ECOWAS countries, debt/GDP was positively related to growth in real GDP and its per capita measure while rate of inflation had a negative relationship. The global economic crisis had no impact on the debt-growth link in the ECOWAS countries. For economic integration and eventual monetary union to be sustainable, countries in ECOWAS must ensure fiscal prudence in the management of their economies.
Keywords: Public debt, economic integration, debt sustainability, West Africa
JEL Classification: F34; H6; F15