02286cas a2200265 a 4500 AALejournalIMF016670 230101c9999 xx r poo 0 0eng d 20.00 USD 9781498358538 2616-5333 BD-DhAAL BD-DhAAL Kabedi-Mbuyi, Malangu. Walking a Fine Line : Public Investment Scaling-Up and Debt Sustainability in Burkina Faso / Malangu Kabedi-Mbuyi, Mame Astou Diouf, Constant Lonkeng Ngouana. Washington, D.C. : International Monetary Fund, 2016. 1 online resource (57 pages) Departmental Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper analyzes the macroeconomics of scaling up public investment in Burkina Faso under alternative financing options, including through foreign aid and a combination of tax adjustment and borrowing. Our findings are twofold: (1) raising official development assistance in line with the Gleneagles agreement provides scope for financing public investment at low cost and would have positive, but somewhat moderate, effects on aggregate output-the growth dividends in the nontradables sector would be partially offset by the Dutch disease in the tradables sector; and (2) the massive investment scaling-up contemplated under Burkina Faso's 'accelerated growth' strategy, while boosting medium- and long-term growth, would lead to unsustainable debt dynamics under a plausible tax adjustment and realistic concessional financing. A more gradual approach to closing Burkina Faso's infrastructure gap is therefore desirable because it would take into account the needed time for the country to address its capacity constraints and to further improve investment efficiency. Mode of access: Internet Diouf, Mame Astou. Lonkeng Ngouana, Constant. Departmental Papers; Departmental Paper ; No. 2016/006 Full text available on IMF http://elibrary.imf.org/view/journals/087/2016/006/087.2016.issue-006-en.xml IMF e-Library