Investigating the Long-run Relationship between Public Debt and Economic Growth: Evidence from Mali
https://doi.org/10.56225/finbe.v3i3.411
Keywords:
Public Debt, Economic Growth, Mali, Autoregressive Distributed Lag (ARDL) ApproachAbstract
In this study, we investigate the long-run relationship between public debt and economic growth in Mali over the period 1980–2024, using the ARDL bounds testing methodology. We find a positive but statistically insignificant effect of the debt-to-GDP ratio on growth, suggesting inefficiencies in debt utilization. Population is found growth on GDP growth is found to have a significantly negative impact on GDP growth, whereas gross fixed capital formation and primary school enrollment exhibit weak but positive influences. Trade openness appears to be negatively correlated with growth, potentially due to structural vulnerabilities in the Malian economy. The evidence points towards better debt management, specific investment in human capital, and policies to counter demographic pressures.
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