Public debt - economic growth nexus in emerging and developing economies: Exploring nonlinearity

Title

Public debt - economic growth nexus in emerging and developing economies: Exploring nonlinearity

Creator

Augustine B.; Rafi O.P.C.M.

Description

This paper explores the nonlinear dynamics between public debt and economic growth by estimating the threshold level of debt for thirty-nine emerging and developing economies. The study found a considerable variation amongst the debt thresholds in these countries, ranging between 24 and 132 per cent. We observed the evidence for an inverted U-shape relationship either partially or fully only in six countries. On the contrary, our study found that expanding debt even beyond the threshold promotes economic growth in some countries, while debt hinders growth even at low debt levels in a few countries. 2022 Elsevier Inc.

Source

Finance Research Letters, Vol-52

Date

2023-01-01

Publisher

Elsevier Ltd

Subject

Economic growth; Nonlinearity; Public debt; Threshold

Coverage

Augustine B., Department of Economics, CHRIST (Deemed to be University), Hosur Road, Bengaluru, 560029, India; Rafi O.P.C.M., Dr. B.R. Ambedkar School of Economics University, Bengaluru, Jnana Bharathi Main Road, Nagarbhavi Post, Bengaluru, 560072, India

Rights

Restricted Access

Relation

ISSN: 15446123

Format

Online

Language

English

Type

Article

Identifier

https://doi.org/10.1016/j.frl.2022.103540

https://www.scopus.com/inward/record.uri?eid=2-s2.0-85143505955&doi=10.1016%2fj.frl.2022.103540&partnerID=40&md5=8db820476ee116fcd7f65e173f60b5e2