The non-linear impact of high and growing government external debt on economic growth: A Markov Regime-switching approach

2014 ◽  
Vol 39 ◽  
pp. 213-220 ◽  
Author(s):  
İbrahim Doğan ◽  
Faik Bilgili
Keyword(s):  
Economic Growth ◽  
Regime Switching ◽  
External Debt ◽  
Markov Regime Switching ◽  
Non Linear

scholarly journals The effectiveness of fiscal policy: contributions from institutions and external debts

2018 ◽  
Vol 25 (1) ◽  
pp. 50-66 ◽  
Author(s):  
Nguyen Phuc Canh
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Panel Data ◽  
Emerging Markets ◽  
Linear Relationship ◽  
External Debt ◽  
Content Type ◽  
Growth Effects ◽  
Non Linear ◽  
Debt Levels

Purpose The effectiveness of fiscal policy is an interesting field in literature of macroeconomics. The purpose of this paper is to investigate the effects of fiscal policy on economic growth under contributions from the differences in institutions and external debt levels. Design/methodology/approach The authors use panel data from 2002 to 2014 from 20 emerging markets and use GMM estimators for unbalanced panel data. Findings The results show positive growth effects of fiscal policy across emerging markets in the examined periods. Notably, the improvement in institutions promotes higher crowding-in effects of fiscal policy. In addition, this paper finds interesting evidences that the external debt has non-linear effects on economic growth, whereas the heterogeneous effects of fiscal policy on economic growth as positive effects in low indebted level and negative effect in high indebted level may explain the mechanism of this non-linear relationship. Originality/value This study proposes the non-linear relationship of fiscal growth effects in emerging economies under the dynamic of debt levels.

scholarly journals A Family of Non Linear Models in a Market with Semi Markov Regimes: Application to the Commodity and the Derivative Market

2017 ◽  
Vol 6 (6) ◽  
pp. 137
Author(s):  
Patrick Assonken ◽  
Gangaram S. Ladde
Keyword(s):  
Regime Switching ◽  
Linear Models ◽  
Commodity Prices ◽  
Heston Model ◽  
Closed Formula ◽  
Option Prices ◽  
Markov Regime Switching ◽  
The Family ◽  
Non Linear ◽  
Derivative Market

This paper introduces a family of coupled semi Markov regime switching multidimensional non linear models for general asset prices. Two particular instances of the models are explored. The first instance is one modeling commodity prices. Estimation formulas for historical parameters are developed. The second instance of the family of models introduced is one generalizing Heston model. It allows for semi Markov regime switching of Heston parameters. We develop a general semi closed formula for vanilla option prices given the risk neutral option parameters.

Supply and demand driven oil price changes and their non-linear impact on precious metal returns: A Markov regime switching approach

2018 ◽  
Vol 73 ◽  
pp. 108-121 ◽  
Author(s):  
Gazi Salah Uddin ◽  
Md Lutfur Rahman ◽  
Syed Jawad Hussain Shahzad ◽  
Mobeen Ur Rehman
Keyword(s):  
Regime Switching ◽  
Precious Metal ◽  
Supply And Demand ◽  
Oil Price ◽  
Price Changes ◽  
Markov Regime Switching ◽  
Non Linear

scholarly journals The relationship between external debt and economic growth: empirical evidence from Ukraine and other emerging economies

2018 ◽  
Vol 15 (1) ◽  
pp. 387-400 ◽  
Author(s):  
Inna Shkolnyk ◽  
Viktoriia Koilo
Keyword(s):  
Economic Growth ◽  
Emerging Economies ◽  
Organizational Support ◽  
External Debt ◽  
Debt Management ◽  
Power Structures ◽  
Linear Type ◽  
Non Linear ◽  
High Level ◽  
The Relationship

The article examines the relationship between external debt and economic growth in emerging economies for the period 2006-2016. The authors used different econometric tools, e.g., ADL model and correlation analysis. The regression results showed that the original values had no significant impact on the estimation of the parameters. Thus, there was made an assumption that emerging economies have a non-linear impact on macroeconomic parameters, including external debt that has a non-linear type of influence on economic growth. The authors established that high level of external debt, in conjunction with macroeconomic instability, impedes economic growth in such countries. The regression model also showed that there is a critical level of debt burden for emerging economies, where the marginal impact of external debt on economic growth becomes negative.The results of the study highlighted the significance of the problem of effective public debt management strategy implementation in Ukraine. This issue is predetermined by the appropriate organizational support. The study recommends improving a public external debt management model. In this paper, the authors proposed a new structure with the participation of new element – independent agencies. The unified external debt management system should integrate all state institutions and executive power structures in this area.

External debt and economic growth in Nigeria

2019 ◽  
Vol 8 (3) ◽  
pp. 157-171
Author(s):  
Keji Sunday Anderu ◽  
◽  
Adeleke Omolade ◽  
Adeniyi Oguntuase
Keyword(s):  
Economic Growth ◽  
External Debt
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