Determinants of the Public Debt and the Role of the Natural Resources: A Cross-Country Analysis

24 Pages Posted: 2 Apr 2019 Last revised: 7 May 2019

See all articles by Elkhan Richard Sadik-Zada

Elkhan Richard Sadik-Zada

Ruhr University of Bochum; University of Cambridge

Andrea Gatto

University of Naples "Parthenope"

Date Written: April 2, 2019

Abstract

This paper investigates the major drivers of the public debt growth in 184 countries. The underlying cross-country survey is conducted on the basis of the improved compilation of datasets on the central government debt for 2013. The study finds that oil abundance, economic growth rate, the share of mineral rent in the total revenue, interest rate payments for foreign borrowings, and being a developing country have statistically significant impact on the growth of the public debt. In contrast, defense spending, unemployment rate, and inflation rate do not have a statistically significant positive impact on the public debt rate.

Keywords: Public debt, Oil rent, Mineral rent, Defence spending, Developing countries

JEL Classification: F21, F34, F36, G15, H6, N1, F3

Suggested Citation

Sadik-Zada, Elkhan Richard and Gatto, Andrea, Determinants of the Public Debt and the Role of the Natural Resources: A Cross-Country Analysis (April 2, 2019). FEEM Working Paper No. 4.2019, Available at SSRN: https://ssrn.com/abstract=3364174 or http://dx.doi.org/10.2139/ssrn.3364174

Elkhan Richard Sadik-Zada

Ruhr University of Bochum ( email )

Universit├Ątsstra├če 150
Bochum, NRW 44780
Germany

University of Cambridge ( email )

Trinity Ln
Cambridge, CB2 1TN
United Kingdom

Andrea Gatto (Contact Author)

University of Naples "Parthenope" ( email )

Via generale parisi
Naples, Naples 80133
Italy

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