Revue internationale des sciences économiques et de gestion

The Role of External Debt on Economic Growth: Evidence from Mauritania

Abstract

Limam Ould Mohamed Mahmoud

This study investigates the role of external debt on the economic growth of Mauritania. It applies various econometrics techniques such as unit root test, Ordinary Least Square (OLS), Johansen Co-Integration Test. The study used Gross Domestic Product (GDP) as dependent variables, and External Debt (ED) and Debt Servicing (DS) as independent variables. The result showed that all variables are stationary at the 1st difference level. OLS test indicates a positive relationship between the GDP and ED and negative relationship between GDP and DS. The Johansen Co-Integration Test revealed a negative relationship between GDP and ED and positive relationship between GDP and DS. The findings support the recommendation that the Mauritanian government should reduce its dependence on external debt by stepping up efforts to boost internal revenue sources.