IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v57y2025i10p1105-1123.html
   My bibliography  Save this article

Assessing heterogeneous time-varying impacts in the debt-growth nexus

Author

Listed:
  • Marta Gómez-Puig
  • Simón Sosvilla-Rivero

Abstract

We empirically identify, measure, and describe the heterogeneity of the debt-growth nexus and the underlying factors that may explain it using panel data for 115 countries from 1995 to 2016. First, countries are endogenously grouped using the grouped fixed effects (GFE) estimator. The GFE estimator endogenously splits the sample into five groups of countries with a distinct estimated effect of public debt-to-GDP ratio on economic growth and allows us to investigate group-specific time-varying impacts. Then, we use a panel data analysis to explore the potential drivers affecting these heterogeneous links’ time-varying magnitude. Our results suggest that the negative impact of public debt on economic growth is moderated by the quality of a country’s institutions and the proportion of productive expenditure but intensified by indebtedness and the maturity of the debt.

Suggested Citation

  • Marta Gómez-Puig & Simón Sosvilla-Rivero, 2025. "Assessing heterogeneous time-varying impacts in the debt-growth nexus," Applied Economics, Taylor & Francis Journals, vol. 57(10), pages 1105-1123, February.
    • Handle: RePEc:taf:applec:v:57:y:2025:i:10:p:1105-1123
    DOI: 10.1080/00036846.2024.2311068
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2024.2311068
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2024.2311068?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:57:y:2025:i:10:p:1105-1123. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.