PUBLIC DEBT SUSTAINABILITY AND ECONOMIC GROWTH IN MALAYSIA: THRESHOLD AND CAUSALITY ANALYSIS

2016 ◽  
Author(s):  
Qaiser Munir ◽  
Sook Ching Kok ◽  
Winnie Abdulnasir
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Causality Analysis ◽  
Debt Sustainability

scholarly journals FISCAL POLICIES IN PANDEMIC TIMES: EUROPEAN EXPERIENCES

2021 ◽  
Author(s):  
Gligor Bishev ◽  
◽  
Aleksandar Stojkov ◽  
Fatmir Besimi ◽  
◽  
...  
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Empirical Literature ◽  
Policy Response ◽  
Fiscal Policies ◽  
Fiscal Consolidation ◽  
Fiscal Stimulus ◽  
Debt Sustainability ◽  
Fiscal Multipliers ◽  
The Impact

The pandemic recession was fundamentally different from ordinary recessions, and thus required a different policy response. We review the empirical literature on fiscal consolidation and fiscal multipliers. Then, we assess the impact of fiscal policies on the pace of recovery and public debt sustainability. A premature or a strong fiscal consolidation might result in lower rates of economic growth and elevated public debt as a share of GDP. We critically analyze different adjustment paths across Europe and offer policy-relevant recommendations. The issue is particularly relevant for countries with a strong fiscal stimulus and moderate to high levels of public debt.

scholarly journals Determinants of the Public Debt in the Eurozone and Its Sustainability Amid the Covid-19 Pandemic

2020 ◽  
Vol 12 (16) ◽  
pp. 6456 ◽  
Author(s):  
Hernán Ricardo Briceño ◽  
Javier Perote
Keyword(s):  
Economic Growth ◽  
Life Expectancy ◽  
Public Debt ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Debt Sustainability ◽  
The Public ◽  
Institutional Conditions ◽  
Life Expectancy At Birth ◽  
Sustainable Economic Growth

Different economic studies have been concentrated on specific and/or isolated factors to explain public debt evolution. In this article we have developed an integrated viewpoint based on financial, social and governance or institutional factors. Under our dynamic econometric assessment for the last two decades (i.e., since the Euro currency inception), economic growth, interest rate, life expectancy at birth, unemployment, government effectiveness and the last sovereign debt crisis have resulted as being the major determinants of its evolution. Public debt sustainability must be assessed continuously with the aim to discuss technical recommendations to maintain it at an even rate, to allow sustainable economic growth and better life standards, in the context of life expectancy increasing and stable governance and institutional conditions. Undoubtedly, the Covid-19 pandemic leads more damaged Eurozone countries with negative real economic growth and high unemployment rates to increase dramatically their current public debts, to such an extent that they could fall into unsustainable paths. Therefore, substantial reforms in European pension and unemployment insurance systems are necessary conditions to ensure public debt sustainability amid Covid-19 pandemic.

scholarly journals Growth-Maximizing Public Debt in Turkey: an Empirical Investigation

2020 ◽  
Vol 6 (20) (3) ◽  
pp. 68-87
Author(s):  
Gokay Canberk Bulus
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Empirical Investigation ◽  
Public Investment ◽  
Current Data ◽  
Debt Sustainability

The aim of the paper is to empirically estimate the growth-maximizing debtto-GDP ratio in the case of Turkey. To calculate the growth-maximizing debt-to-GDP ratio FMOLS, DOLS, and CCR estimators are used for the period from 1960-2013. According to the empirical findings the growth-maximizing debt-to-GDP ratio varies between 34.3% and 38.7%. Based on a comparison of these ratios to current data (29.1% for 2018), Turkey has the capacity for additional borrowing to achieve a growthmaximizing debt-to-GDP ratio. If this additional borrowing capacity is used for public investment with a return greater than the interest cost of the additional debt economic growth will be maximized and public debt sustainability supported.

Vicious Cycle of Economic Growth, Pm2.5 and COVID-19 Case of G7 Countries

2020 ◽  
Author(s):  
Rıdvan Karacan
Keyword(s):  
Economic Growth ◽  
Air Pollution ◽  
Particulate Matter ◽  
Fossil Fuels ◽  
Fine Particulate Matter ◽  
Panel Cointegration ◽  
Air Pollutant ◽  
Population Exposure ◽  
Causality Analysis ◽  
G7 Countries

<p>Today, production is carried out depending on fossil fuels. Fossil fuels pollute the air as they contain high levels of carbon. Many studies have been carried out on the economic costs of air pollution. However, in the present study, unlike the former ones, economic growth's relationship with the COVID-19 virus in addition to air pollution was examined. The COVID-19 virus, which was initially reported in Wuhan, China in December 2019 and affected the whole world, has caused many cases and deaths. Researchers have been going on studying how the virus is transmitted. Some of these studies suggest that the number of virus-related cases increases in regions with a high level of air pollution. Based on this fact, it is thought that air pollution will increase the number of COVID-19 cases in G7 Countries where industrial production is widespread. Therefore, the negative aspects of economic growth, which currently depends on fossil fuels, is tried to be revealed. The research was carried out for the period between 2000-2019. Panel cointegration test and panel causality analysis were used for the empirical analysis. Particulate matter known as PM2.5[1] was used as an indicator of air pollution. Consequently, a positive long-term relationship has been identified between PM2.5 and economic growth. This relationship also affects the number of COVID-19 cases.</p><p><br></p><p><br></p><p>[1] "Fine particulate matter (PM2.5) is an air pollutant that poses the greatest risk to health globally, affecting more people than any other pollutant (WHO, 2018). Chronic exposure to PM2.5 considerably increases the risk of respiratory and cardiovascular diseases in particular (WHO, 2018). For these reasons, population exposure to (outdoor or ambient) PM2.5 has been identified as an OECD Green Growth headline indicator" (OECD.Stat).</p>

How Does Public Debt Affect the Indian Macroeconomy? A Structural VAR Approach

2020 ◽  
Vol 14 (3) ◽  
pp. 253-284
Author(s):  
Ranjan Kumar Mohanty ◽  
Sidheswar Panda
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Public Debt ◽  
Positive Impact ◽  
Decomposition Analysis ◽  
Structural Var ◽  
Adverse Impact ◽  
Mixed Effect ◽  
Domestic Debt ◽  
The Impact

The study investigates the macroeconomic effects of public debt in India during 1980–2017 using a structural vector autoregression framework. The objective is to examine the impact of public debt on the interest rate, investment, inflation and economic growth in India. The results of the impulse response functions show that public debt has an adverse impact on economic growth but a positive impact on the long-term interest rate in the short run and a mixed effect (both negative and positive) on investment and inflation. We also find that domestic debt has a more adverse impact on the economy than external debt. The estimated variance decomposition analysis finds that much of the variation in selected macro variables are explained by public debt and growth in India. This study suggests that public debt especially domestic debt should be controlled and channelled productively to have a favourable impact on the economy. JEL Classification: H63, O40, C40

Sign in / Sign up

Export Citation Format

Share Document