Public Debt and External Debt Sustainability among BRICS Countries

Magulsha George () and K.R. Shanmugam
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Magulsha George: Research Scholar (Corresponding Author), Madras School of Economics, Gandhi Mandapam Road, Chennai-600 025 (India)

Working Papers from Madras School of Economics,Chennai,India

Abstract: This study analyses an important policy issue pertaining to the public debt and external debt of BRICS nations from 1993 to 2020 using the Bohn framework and a penalized spline estimation method. The results indicate that, as the primary surplus reacts positively and significantly to public debt in China and South Africa, the debt is sustainable in these nations. In Brazil, India and Russia, the debt is not sustainable. The external debt policy is sustainable only in China and not in other BRICS nations. These results suggest immediate policy interventions in Brazil, India and Russia to achieve sustainable levels of public debt and external debt. We hope that these results will be useful to policy makers and other stake holders to take appropriate strategies to improve the public debt and external debt position of BRICS nations and make them sustainable.

Keywords: Sustainable Debt; BRICS; Bohn Model; Penalized Spline. (search for similar items in EconPapers)
JEL-codes: C23 D72 E62 H63 H72 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2023-11
New Economics Papers: this item is included in nep-cis
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Related works:
Journal Article: Public Debt and External Debt Sustainability among BRICS Countries (2022)
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