Determining Optimal Thresholds for Macroeconomic Indicators in DRC (Congo). An Analysis of Macroeconomic Convergence Criteria in SADC, COMESA and ECCAS — Oak Academic Publishing
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Determining Optimal Thresholds for Macroeconomic Indicators in DRC (Congo). An Analysis of Macroeconomic Convergence Criteria in SADC, COMESA and ECCAS
Department of Economics, University of Kinshasa (DRC), Kinshasa, Democratic Republic of the Congo
1 Department of Economics, University of Kinshasa (DRC), Kinshasa, Democratic Republic of the Congo
The aim of this article is to determine for the DRC, the optimal levels of four macroeconomic indicators (inflation, budget balance as a percentage of GDP, public debt as a percentage of GDP and international reserves in months of imports) used as convergence criteria in three Regional Economic Communities (RECs), namely SADC, COMESA and ECCAS. The threshold model is used as an empirical model to calculate the optimal level for each indicator. The results suggest that the optimum levels of these indicators for the DRC deviate significantly from the convergence criteria set by most of the RECs of which the country is a member. This raises the question of the relevance for the DRC of complying with these criteria, which would restrict its scope for action, particularly to promote growth and development.
KeywordsMacroeconomic IndicatorsDRCThreshold Model
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