EFFETS DU SEUIL DE L’ENDETTEMENT PUBLIC SUR LA CROISSANCE ECONOMIQUE : ESTIMATION SUR DONNEES DE PANEL

Résumé

This article aims to analyze the effects of public debt on economic growth in developed and developing countries. To this end, and based on the method developed by Hansen (1999), we used a dynamic panel taking the form of a quadratic equation for a sample of 20 countries over the period 1998-2019.It is a question of determining an optimal debt threshold to not exceed so that the public debt will have a positive effect on the economy. The estimation’s results show that public debt affect negatively the economic growth in a nonlinear way (concave) above a certain threshold: 129.01% for countries with high debt ratio, and 24.07% for countries with a low debt ratio.