Public Debt and Economic Growth in Emerging Market Economies

23 Pages Posted: 13 Jun 2014

See all articles by Bettina Bökemeier

Bettina Bökemeier

Bielefeld University

Alfred Greiner

Bielefeld University - Department of Business Administration and Economics

Date Written: June 12, 2014

Abstract

This paper studies the relationship between public debt and economic growth for selected emerging markets performing panel data estimations. Several regressor variables are included, but the main focus is on public debt. The results reveal a significant positive correlation between public debt and the subsequent growth rate of per capita GDP. Population and investment also yield a significant positive influence on subsequent growth, whereas the initial real GDP per capita gives a negative influence. Other variables such as the inflation rate, the trade balance or the exchange rate do not render a significant effect with respect to economic growth.

Keywords: public debt, economic growth, emerging markets, empirics

JEL Classification: E62, H63

Suggested Citation

Bökemeier, Bettina and Greiner, Alfred, Public Debt and Economic Growth in Emerging Market Economies (June 12, 2014). Bielefeld Working Papers in Economics and Management No. 08-2014, Available at SSRN: https://ssrn.com/abstract=2449222 or http://dx.doi.org/10.2139/ssrn.2449222

Bettina Bökemeier (Contact Author)

Bielefeld University ( email )

Universitätsstraße 25
Bielefeld, 33615
Germany

Alfred Greiner

Bielefeld University - Department of Business Administration and Economics ( email )

P.O. Box 100131
Bielefeld, 33501
Germany
+49 521 106 4859 (Phone)
+49 521 106 67120 (Fax)

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