Journal of Economics and Public Finance ISSN 2377-1038 (Print) ISSN 2377-1046 (Online) Vol. 5, No. 4, 2019 www.scholink.org/ojs/index.php/jepf 431 Original Paper The Institutional Dimension of Public Financial Governance and Public Sector External Debt in Guinea Sidiki KONATE 1* & Rachid SMOUNI 1 1 Department of Economics and Management, Faculty of Legal, Economic and Social Sciences of Mohammedia, Hassan II University of Casablanca, Morocco * Sidiki KONATE, Department of Economics and Management, Faculty of Legal, Economic and Social Sciences of Mohammedia, Hassan II University of Casablanca, Morocco Received: October 17, 2019 Accepted: October 28, 2019 Online Published: November 21, 2019 doi:10.22158/jepf.v5n4p431 URL: http://dx.doi.org/10.22158/jepf.v5n4p431 Abstract Through an institutional approach, this article seeks to address the problem of public finance governance and the external debt of the public sector in Guinea. As a result, based on the main theoretical and conceptual contributions relating to public finance governance and public sector external debt, we have devised a theoretical conceptual model that theoretically reflects the influence of public finance governance on public external debt. We tested this model using the linear correlation method, regression and modeling. The results showed a significant influence of the institutional dimension of the governance of public finances on public external debt in Guinea through the components: quality of macroeconomic management and debt policy. Keywords Governance, public finances, public external debt, public sector 1. Introduction The Governance of public finances presupposes “the legitimate use of power or authority in the management of public financial resources, of a country with integrity, transparency, accountability, equity and result orientation, to promote development”(1). As such, two key factors in the governance of public finances are advanced by the international financial organizations: ensuring sound management of public finances and effective budget control (IMF, 2001). Indeed, in Guinea the lax management of public finances by the military regimes, during the years 1985 to 2010 (MEF, 2012), led to a macroeconomic instability and an increase in the public external debt rate which had reached 109% GDP in 2006 (MEF, 2012). Foreign exchange reserves ran out within a month of imports. Following the