Size of Government Debt Market and Infrastructure Gap: Empirical Evidence from WAEMU

Abstract: Financing tools can be beneficial to reduce infrastructural deficit. This article analyzes the relationship between the development of government bond markets and the infrastructure financing gap in the countries of West African Economic and Monetary Union (WAEMU). By estimating a generalized least square on data from the 8 WAEMU countries over the period 2005-2020, results show that government debt markets are key in infrastructure financing. This research suggests that governments implement policies that promote sovereign bond markets. Keywords: Government Debt Markets, Infrastructure Gap, Africa, GLS, WAEMU JELClassification Number: C24, H54, O18, O55