Public debt in developing Asia: a help or hindrance to growth?. Issue 17 (6th October 2020)

• Record Type: Journal Article
• Authors: Gunarsa, Singgih; Makin, Tony; Rohde, Nicholas
• Is Part Of: Applied economics letters. Volume 27:Issue 17(2020)
• Page Start: 1400
• Page End: 1403
• Publication Date: 2020-10-06
• Subjects: Developing Asia -- public debt -- economic growth -- panel data; O11 -- O47 -- H63; Economics -- Periodicals; Economics, Mathematical -- Periodicals; 330
• DOI: 10.1080/13504851.2019.1683147
• Languages: English
• ISSNs: 1350-4851

Abstract

ABSTRACT: We study the effects of public debt on economic growth using a panel of 25 Asian countries from 1970 to 2015. Using a collection of panel data models, we find weak evidence in favour of a negative relationship. Our estimates imply that a 10% increase in debt predicts declines in growth rates ranging from 0.2% to 0.4%.