Economics, Econometrics and Finance
3 years ago

Optimal external debt threshold for Guinea identified at 25.2%!

Journal of Economics and International Finance
An econometric analysis: Is there an optimal external debt threshold for Guinea?
Aziz Diallo Abdoul, Fofana NZue Felix

Paper Summary

The study looked at Guinea's debt and economic growth. They found that having an external debt-to-GDP ratio of 25.2% is optimal for Guinea. Currently, the ratio is at 21.7%, so there is room for more borrowing. In the short term, the debt ratio doesn't affect the country's economy much.

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