Econometric Analysis of Benin Public Debt Sustainability

Public indebtedness rates (outstanding debt recorded in the GDP) of Benin are respectively from 41.2% (4th term 2019), 43.9% (1st term 2020) and 48.4% (2nd term 2020). Previously, these rates have increased from 56.2% on December 31, 2018, compared to 54.3% in 2017 (Autonomous Amortization Fund - CAA, 2020). The progress of these indebtedness rates deserves an analysis of Benin public debt sustainability. This study thus aims at carrying out the econometric analysis of Benin public debt sustainability. The outcomes of data processing in the programming software R reveal that estimated β ( = 0,7318), is comprised between 0 and 1; we can deduce, according to QUINTOS (1995) that the revenues and expenditures partially adjust and that Benin public has a low sustainability.