Public debt in developing Asia: a help or hindrance to growth?

Singgih Gunarsa, Anthony Makin and Nicholas Rohde

Applied Economics Letters, 2020, vol. 27, issue 17, 1400-1403

Abstract: We study the effects of public debt on economic growth using a panel of 25 Asian countries from 1970 to 2015. Using a collection of panel data models, we find weak evidence in favour of a negative relationship. Our estimates imply that a 10% increase in debt predicts declines in growth rates ranging from 0.2% to 0.4%.

Date: 2020
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DOI: 10.1080/13504851.2019.1683147

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