The impact of public debt on economic growth in Albania

Etleva Bajrami

Romanian Economic Journal, 2020, vol. 23, issue 77, 20-27

Abstract: Public debt provides the necessary funds for governments to enable economic incentives in various sectors or industries. Public debt enables strategic investments that benefit the entire economy, which would otherwise be difficult to achieve. By using public debt governments do not reduce government spending in case of insufficient revenues. Public debt has become commonplace in today governments. For this reason, public debt has been in the attention of policymakers as well as experts of economies in recent decades. The focus of this study is the level of public debt and its impact on economic growth in Albania. The purpose of this study is to find the relation between public debt and GDP per capita. The first objective is to analyze the relation of total public debt with GDP per capita and the second objective is to analyze the external debt relation with GDP per capita. To achieve the paper objectives, the analysis is based on a model build with secondary data using the least-squares method. In this paper, it has been concluded that total public debt has a positive impact on GDP growth per capita, while there is a negative relationship between external public debt and GDP per capita.

Keywords: public debt; external debt; GDP per capita; government consumption (search for similar items in EconPapers)
JEL-codes: H63 H72 H74 O11 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.rejournal.eu/sites/rejournal.versatech. ... 30/3612/3bajrami.pdf (application/pdf)

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:rej:journl:v:23:y:2020:i:77:p:20-27

Access Statistics for this article

Romanian Economic Journal is currently edited by Ioan Popa, PhD

More articles in Romanian Economic Journal from Department of International Business and Economics from the Academy of Economic Studies Bucharest Contact information at EDIRC.
Bibliographic data for series maintained by Radu Lupu ().