The Impact of Public Debt on Economic Growth within EU
The Impact of Public Debt on Economic Growth within EU
Author(s): Meral Kagitci (Ibraim), Mirela Elena Nichita, Marcel VulpoiSubject(s): Economic development, EU-Accession / EU-DEvelopment, Public Finances, Fiscal Politics / Budgeting
Published by: Fundatia Română pentru Inteligenta Afacerii
Keywords: Public debt; Economic growth; GDP per capita; Fiscal adjustment;
Summary/Abstract: The main idea of this paper consists in offering a general view regarding a comparative analysis between different EU countries on public debt and economic growth. In the meantime, this is the evidence that the annual shift of the public dues ratio and the budget deficit to GDP ratio are seen in a bad way and linearly associated with per-capita GDP increase. The conduits term through government`s obligation (level or change) is expected to have a big impact over the economical increased rate as: i) secret saving; ii) social investments; iii) all the productivity factors; iv) unlimited long-term nominal and real interest rate. From a political point of view, the results will bring basically arguments for dues reduction to support long-term increase prospect.
Journal: SEA – Practical Application of Science
- Issue Year: II/2014
- Issue No: 04
- Page Range: 65-72
- Page Count: 8
- Language: English