Category Issue 2

Does External Debt Stimulate Economic Growth in Mozambique? An Empirical Evidence

Abstract – The present paper investigates the impact of external debt on Mozambique’s economic growth for the period from 2001 to 2017. Mozambique is a country with a high external debt as it has reached about 70.8% of GDP in 2017, representing 74% of total public debt. The real GDP decelerated to 3.7% in 2017, far below from the average growth of 7% that the country achieved on between 2011 and 2015. This is an empirical study based on the Johansen cointegration, the unit root test was conducted through the ADF and PP tests and the VAR and VECM models…