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The Impact Of Public Debt On Economic Growth Within Eu

Author

Listed:
  • Meral (IBRAIM) KAGITCI

    (The Bucharest University of Economic Studies (ASE))

  • Mirela Elena NICHITA

    (The Bucharest University of Economic Studies (ASE))

  • Marcel VULPOI

    (The Bucharest University of Economic Studies (ASE))

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.

Suggested Citation

  • Meral (IBRAIM) KAGITCI & Mirela Elena NICHITA & Marcel VULPOI, 2014. "The Impact Of Public Debt On Economic Growth Within Eu," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 4, pages 65-72, July.
    • Handle: RePEc:cmj:seapas:y:2014:i:4:p:65-72
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    References listed on IDEAS

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    More about this item

    Keywords

    Public debt; Economic growth; GDP per capita; Fiscal adjustment;
    All these keywords.

    JEL classification:

    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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