Exogenous Shocks, Excessive Indebtedness and Dependence on Official Development Assistance : What Levers to Prevent Recession and Create Value in the West African Economic and Monetary Union Countries?

The study of the effects of exogenous shocks on the creation of added value aimed at showing the impact of those shocks on the gross domestic product as well as the effect of debt and public aid used by some governments as a solution to the effects of exogenous shocks. The study revealed a negative effect of exogenous shocks. Besides, these shocks are permanent. Moreover, debt and public aid have a long run negative impact on the gross domestic product per capita. Thus, in addition to the traditional levers of consumption, investment and public expenditure, West African monetary union economies have trade openness and quality institutions to prevent a contraction in economic activity and create value