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How does democracy affect public debt? Evidence from the Arab world

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  • Bougharriou, Nouha
  • Benayed, Walid
  • Gabsi, Foued Badr

Abstract

This paper investigates the impact of democracy on public debt in the Arab world over the period 2002-2013. The results confirm the existence of an inverted-U relationship between democracy and public debt. This supports the hypothesis that some level of democracy is required to control public debt.

Suggested Citation

  • Bougharriou, Nouha & Benayed, Walid & Gabsi, Foued Badr, 2018. "How does democracy affect public debt? Evidence from the Arab world," Economics Discussion Papers 2018-54, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwedp:201854
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    1. Bougharriou, Nouha & Benayed, Walid & Gabsi, Foued Badr, 2022. "Democratic transition and fiscal policy in the Arab world," Economic Systems, Elsevier, vol. 46(2).

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    More about this item

    Keywords

    democracy; public debt; non-linear dynamic panel; arab world;
    All these keywords.

    JEL classification:

    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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