Effects of External Public Debt on Economic Growth: The Case of the Republic of Congo

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.