Does Public Debt Affect Economic Growth? Panel Evidence from Central and Eastern Europe
Bibliographic Data
| ID | 7973314 |
|---|---|
| Authors | Milena Konatar (0000-0002-9684-4376, corresponding author), Jovan Đurašković, Julija Cerović Smolović (0000-0001-9547-1750), Milivoje Radović |
| Year | 2022 |
| Volume | 70 |
| Issue | 5 |
| Pages | 574-596 |
| Publication date | 2022-12-05 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Politická ekonomie (JOURNAL) |
| Journal identifiers | ISSN: 0032-3233 • E-ISSN: 2336-8225 |
| Publisher | Prague University of Economics and Business (PUBLISHER • CZ) |
| DOI | 10.18267/j.polek.1365 |
| OpenAlex | W4311624079 |
| Language | EN |
| Citations received | 1 |
| References cited | 36 |
The paper employs a form of the panel ARDL-based error correction model (ECM) to explore the short-run and long-run relationship between public debt (and certain macroeconomic variables) and economic growth in Central and Eastern European (CEE) countries. It covers the period 2006Q1−2018Q4. The results indicate both short-term and long-term causality (except for financial development), though the marginal effects are variable-specific. There is a negative effect of public debt, interest rate and exchange rate on growth, whereas the saving rate, trade openness, financial development, fixed capital formation and population growth contribute to economic development. Thus, a responsible and saving-oriented fiscal policy, coupled with higher private sector investment, an export-oriented private sector and undervalued real exchange rate, and population growth would contribute to economic development in CEE countries
Affect (linguistics) · Debt · Development economics · Economic policy · Economics · International economics · Macroeconomics · Monetary economics · Panel data · Economic and Fiscal Studies · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth
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Public debt and growth
Growth in a Time of Debt
Does high public debt consistently stifle economic growth? A critique of Reinhart and Rogoff
Some Tests of Specification for Panel Data
Bounds testing approaches to the analysis of level relationships
The debt overhang and the disincentive to invest
Financial development and economic growth
Public debt and economic growth
On the Determination of the Public Debt
Convergence
Financial Development, Growth, and the Distribution of Income
Public Debt and Growth
| Unique citing works | 1 |
|---|---|
| Citations per year | 1 |
| Citation span | 2025 - 2025 (1) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 1 |