Work

The threshold effect of public debt on economic growth: The case of the new European Union member states

Year: 2023

Type: article

Abstract: The aim of this paper is to analyze the impact of public debt on economic growth and the possible existence of a non-linear relationship in eleven European Union (EU) new member states (NMS) for the period 2000–2019. If we compare this study with the studies of Reinhart and Rogoff (2010) and Kumar and Woo (2010), in this study, we will use more recent data that will enable us to perceive the relationship between public debt and economic growth in the new EU countries. The results of our study show that the debt turning point is roughly between 40.16 and 61.2 percent of GDP, dependent on which subgroup we have analyzed. This paper contributes to determining the point of public debt that would contribute to the economic growth of the new EU member states.

Source: Journal of Governance and Regulation

DOI: 10.22495/jgrv12i2art18

Authors: Gazmore Rexhepi, Valbona Zeqiraj

Institutions: Public University "Kadri Zeka", Universiteti i Gjakovës “Fehmi Agani”

Language: English

Topic: Fiscal Policies and Political Economy

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: diamond

OpenAlex ID: W4380052006

FWCI: 0.695

Cites: 23

Cited by: 4

Related to: 10