Public Debt and Economic Growth in Emerging Market Economies. (6th March 2015)

• Record Type: Journal Article
• Authors: Fincke, Bettina; Greiner, Alfred
• Is Part Of: South African journal of economics. Volume 83:Number 3(2015:Sep.)
• Page Start: 357
• Page End: 370
• Publication Date: 2015-03-06
• Subjects: Economics -- Periodicals; South Africa -- Economic conditions -- Periodicals; Économie politique -- Périodiques; Afrique du Sud -- Conditions économiques -- Périodiques; Economie; ECONOMICS; Electronic journals; 330.5
• DOI: 10.1111/saje.12079
• Languages: English
• ISSNs: 0038-2280

Abstract

<abstract abstract-type="main"> <title>Abstract</title> <p>This paper empirically studies the relationship between public debt and economic growth for selected emerging market economies by performing panel data estimations. The results reveal a statistically significant positive correlation between public debt and the subsequent growth rate of per capita gross domestic product (GDP). Population and investment are also positively correlated with per capita growth, whereas the initial level of real GDP per capita exerts a negative influence on growth, implying conditional convergence. Other variables such as the inflation rate, the trade balance or the exchange rate do not yield a statistically significant effect with respect to economic growth.</p> </abstract>