2nd Indian International Conference on Industrial Engineering and Operations Management

Effect of Public Financial Management on Foreign Debt Accumulation: An Empirical Investigation into the determinants of Moroccan Indebtedness

Fatima-Ezzahra RAFIE & Mostafa lekhal
Publisher: IEOM Society International
0 Paper Citations
1 Views
1 Downloads
Abstract

This paper investigates the factors contributing in debt accumulation in Morocco using annual data over the last two decades. A certain determinants of external debt buildup identified by the literature are examined using ARDL approach to co-integration. The findings affirm the relationship between the level of external debt and the explanatory variables both in long and short run. Nevertheless, the nexuses are statistically insignificant. The Granger causality test that was conducted on the model variables reveals a bidirectional cause between external debt and exchange rate. Furthermore, the regulatory quality is the only variable among institutional variables which is causes by foreign borrowing.

Published in: 2nd Indian International Conference on Industrial Engineering and Operations Management, Warangal, India

Publisher: IEOM Society International
Date of Conference: August 16-18, 2022

ISBN: 978-1-7923-9160-6
ISSN/E-ISSN: 2169-8767