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Sovereign Debt and Uncertainty in the Mozambican Economy

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  • Constantino J. Gode

Abstract

This paper studies the impact of uncertainty and debt crisis on the dynamics of the Mozambican economy over the last two decades. Investment boom and accelerated growth did not take place until peace and economic reforms were assured, helped by the role of the Paris Club creditors as senior lenders, which averted the adverse impact of a debt overhang. Innovations to private consumption and to income are positively and strongly correlated. Current account has shown persistent deterioration while private consumption is not strongly correlated with uncertainty.

Suggested Citation

  • Constantino J. Gode, 2001. "Sovereign Debt and Uncertainty in the Mozambican Economy," WIDER Working Paper Series DP2001-130, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2001-130
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