Relationship Between External Debt And Economic Growth Panel Data Analysis for Uemoa Countries — Mahamane Moutari Abdou Baoua

External debt has become an important problem for developing countries especially since the 1980s External borrowing is expected to serve as a source of capital formation that stimulates economic growth In this context there have been many studies conducted in recent years to investigate the relationship between external debt and economic growth The West African Economic and Monetary Union WAEMU or UEMOA was established on 10 January 1994 with the Treaty signed in Dakar The main objectives of UEMOA are to build a harmonized and integrated economic space in West Africa In this space the complete freedom of movement of person s capital goods services and factors of production as well as the effective enjoyment of the right of exercise and establishment for the liberal professions and the right of residence for citizens throughout the Territory is ensured UEMOA is constituted by Eight coastal and Sahelian countries Benin Burkina Côte d Ivoire Guinea Bissau Mali Niger Senegal and Togo linked by the use of a common currency the FCFA and benefiting from common cultural traditions UEMOA covers an area of 3 506 126 km2 and has a population of 112 million The GDP growth rate at constant prices is 7 in average The main purpose of this study is to investigate the relationship between external debt and economic growth for seven 7 UEMOA member states These countries include Benin Burkina Côte d Ivoire Mali Niger Senegal and Togo We exclude Guinea Bissau because it joined the union in 1997 Panel data method was used in the analysis In this context it is hoped that the study will contribute to the instructor and the learners as well as the literature