Appendix 4 applied the Buffie et al. (2012) model to analyse the relationship between public investment, growth, and debt sustainability in Côte d'Ivoire. Simulation results advised against a massive and sustained surge in public investment growth due to the likelihood that debt sustainability problems could arise even if structural conditions improved. The results suggested, instead, a moderate scaling up of public investment alongside structural reforms in such areas as public investment efficiency, the ability to collect more revenue, and the return to investment and productivity on both the traded and non-traded sectors.
Anon. Côte d’Ivoire: Enhanced Heavily Indebted Poor Countries Initiative - Completion Point Document and Multilateral Debt Relief Initiative. International Monetary Fund, Washington, D.C., USA (2012) 71 pp. [IMF Country Report No. 12/170]