5th European International Conference on Industrial Engineering and Operations Management

Debt Buildup Waves and Economic Growth Nexus: An Empirical Investigation of Morocco

Fatima-Ezzahra RAFIE & Mostafa lekhal
Publisher: IEOM Society International
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Track: Financial Engineering
Abstract

This paper studies the impact of overseas borrowing on economic growth in Morocco over the period spanning from 2000 to 2020. The empirical exploration is based on ARDL approach to co-integration, allowing the interaction between external debt, exports and debt’s source structure. The results show that in long term, external debt and multilateral debt have negative and insignificant impact on economic performance. Capital stock has a positive and significant effect on economic growth. The results are robust to various tests.

Keywords
ARDL, Sovereign External Debt, Economic Growth, Exports, Debt Structure.

Published in: 5th European International Conference on Industrial Engineering and Operations Management, Rome, Italy

Publisher: IEOM Society International
Date of Conference: July 26-28, 2022

ISBN: 978-1-7923-9161-3
ISSN/E-ISSN: 2169-8767