New empirical evidence on the impact of public debt on economic growth in EMU countries

New empirical evidence is presented on the impact of public debt on economic growth. To that end, we employ the Autoregressive Distributed Lag (ARDL) bounds testing approach using annual data from both central and peripheral countries of the European Economic and Monetary Union (EMU) for the 1961 -2...

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Bibliographic Details
Published in:Revista de economía mundial 2019-01, Vol.51 (51)
Main Authors: Sosvilla, Simon, Gómez-Puig, Marta
Format: Article
Language:English
Subjects:
Creixement econòmic
Deficit financing
Deute públic
Economic growth
Economic models
European Economic and Monetary Union
European Monetary Union
Eurozone
Growth rate
Monetary unions
Public debt
Zona euro
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Summary:New empirical evidence is presented on the impact of public debt on economic growth. To that end, we employ the Autoregressive Distributed Lag (ARDL) bounds testing approach using annual data from both central and peripheral countries of the European Economic and Monetary Union (EMU) for the 1961 -2015 period. In particular, we allow for different endogenously (da- ta-based) regimes in the parameter relating the public debt variable to the real growth rate. Our results suggest that the impact of public debt on economic growth not only changes across EMU countries, but also over time
ISSN:1576-0162
1576-0162
2340-4264
DOI:10.33776/rem.v0i51.3905