The "Three-D-Relationship": Do Democracy and Development Lead to Increased Debt?

Petr Blížkovský, Luboš Střelec and Kateřina Blížkovská
Additional contact information
Petr Blížkovský: European Committee of the Regions, Brussels, Belgium
Kateřina Blížkovská: Humboldt University, Berlin, Germany

European Journal of Business Science and Technology, 2020, vol. 6, issue 1, 21-36

Abstract: The paper aims to test the research hypothesis of whether more democratic and economically developed countries tend to have higher public debts (the "Three-D-Relationship") or not. The hypothesis was tested on a panel of 91 countries over the period from 2012 to 2016 using a two way analysis of variance where debt was the dependent variable and regime type and income levels were factors. The results only partially confirmed the hypothesis. Higher democratic standards did correlate with higher debt levels. Similarly, higher income levels also correlated with bigger debt burden. Both "democracy" and "development" combined was not linked to higher debt levels.

Keywords: democracy; authoritarian regimes; economic development; public debt; GDP; public policy (search for similar items in EconPapers)
JEL-codes: H11 H60 H63 P51 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://ejobsat.cz/doi/10.11118/ejobsat.2020.003.html (text/html)
http://ejobsat.cz/doi/10.11118/ejobsat.2020.003.pdf (application/pdf)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:men:journl:v:6:y:2020:i:1:p:21-36

DOI: 10.11118/ejobsat.2020.003

Access Statistics for this article

European Journal of Business Science and Technology is currently edited by Svatopluk Kapounek

More articles in European Journal of Business Science and Technology from Mendel University in Brno, Faculty of Business and Economics Contact information at EDIRC.
Bibliographic data for series maintained by Ivo Andrle ().