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Public debt and economic growth: panel data evidence for Asian countries

Author

Listed:
  • Dimitrios Asteriou

    (Oxford Brookes University)

  • Keith Pilbeam

    (City, University of London)

  • Cecilia Eny Pratiwi

    (University of Birmingham)

Abstract

This study examines the relationship between public debt on both short and long-run economic growth, in a panel of selected Asian countries for the period of 1980–2012. We employ several econometrics methods: pooled mean group, mean group, dynamic fixed effects and also allow for common correlated effects. The impact of a change in public debt is also analysed using asymmetric panel ARDL method. Our results indicate that an increase in government debt is negatively associated with economic growth in both the short and long-run.

Suggested Citation

  • Dimitrios Asteriou & Keith Pilbeam & Cecilia Eny Pratiwi, 2021. "Public debt and economic growth: panel data evidence for Asian countries," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 45(2), pages 270-287, April.
    • Handle: RePEc:spr:jecfin:v:45:y:2021:i:2:d:10.1007_s12197-020-09515-7
    DOI: 10.1007/s12197-020-09515-7
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    More about this item

    Keywords

    Public debt; Economic growth; Dynamic panel data; Asymmetries; ARDL;
    All these keywords.

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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