Full-text resources of CEJSH and other databases are now available in the new Library of Science.
Visit https://bibliotekanauki.pl

PL EN


2016 | 16 | 1(37) | 115-129

Article title

Government debt influence on EU countries economic growth: importance of matching Maastricht criterion

Content

Title variants

Wpływ długu publicznego na wzrost gospodarczy krajów UE: znaczenie spełnienia kryteriów z Maastricht

Languages of publication

EN

Abstracts

EN
The paper aims to analyse the impact of government debt on the country’s economic growth. Beginning of the economic crisis in 2007 and rapid growth of government debt has attracted interest in this topic. Government debt-to-GDP ratio in the EU has increased from 58.7 to 86.8 percent from 2007 till 2014 and opened a vast field for discussions – how economic growth is affected by this situation? Using panel data approaches, we find evidence that in short-run increasing government debt has uniform negative impact on economic growth in all EU Member States but in the long-run negative impact is only in those that do not match Maastricht criterion.
PL
Artykuł ma na celu przeanalizowanie wpływu długu publicznego na wzrost gospodarczy danego kraju. Zainteresowanie tym tematem wzrosło znacząco po rozpoczęciu kryzysu ekonomicznego w 2007 oraz związanym z tym gwałtownym podniesieniem poziomu zadłużenia rządów. W okresie od 2007 do 2014 roku wskaźnik długu publicznego do PKB w Unii Europejskiej wzrósł z 58,7 do 86,8%, co otworzyło szerokie pole do dyskusji – czy ta sytuacja oddziałuje na wzrost gospodarczy? Wykorzystując podejście oparte na danych panelowych, autorzy artykułu znaleźli dowód na to, że w krótkim okresie rosnący dług publiczny ma stały negatywny wpływ na wzrost gospodarczy we wszystkich krajach członkowskich Unii Europejskiej, natomiast w długim okresie negatywny wpływ występuje tylko w tych krajach, które nie spełniają kryteriów z Maastricht.

Year

Volume

16

Issue

Pages

115-129

Physical description

Dates

published
2016-03

Contributors

  • Vytautas Magnus University, Lithuania
  • Šiauliai University, Lithuania

References

  • Adam, K. (2011). Government Debt and Optimal Monetary and Fiscal Policy. European Economic Review 55 (1): 57-74.
  • Afonso, A.; Alves, J. (2014). The Role of Government Debt in Economic Growth. Working Papers 16/2014/DE/UECE. Available at: http://ssrn.com/abstract =2468805. Accessed 14 February 2016.
  • Afonso, A.; Gomes, P. Rother, P. (2011). Short- and long-run determinants of sovereign debt credit ratings. International Journal of Finance and Economics 16: 1-15.
  • Afonso, A.; Sousa, R., M. (2012). The macroeconomic effects of fiscal policy. Applied Economics, Taylor & Francis Journals 44 (34): 4439-4454.
  • Afonso, A.; Jalles, J., T. (2013). Growth and productivity: The role of government debt. International Review of Economics & Finance, Elsevier 25 (C): 384-407.
  • Baum, A.; Checherita-Westphal, C.; Rother, P. (2012). Debt and growth new evidence for the euro area. ECB Working papers 1450. Available at: http://www.ecb.europa.eu/pub/pdf/ scpwps/ecbwp1450.pdf. Accessed 14 February 2016.
  • Calderon, C.; Fuentes, J. R. (2013). Government Debt and Economic Growth. IDB Working Paper Series IDB-WP-424. Available at: http://publications.iadb.org/bitstream/handle/ 11319/4641/Government%20Debt%20and% 20Economic%20Growth.pdf;jsessionid= 29334593D186C19458E97AE72734F031?sequence=1. Accessed 14 February 2016.
  • Cecchetti, S., G.; Mohanty, M., S.; Zampolli, F. (2011). The real effects of debt. BIS Working papers 352. Available at: http://bis.hasbeenforeclosed.com/publ/othp16.pdf. Accessed 14 February 2016.
  • Checherita-Westphal, C.; Rother, P. (2010). The impact of high and growing government debt on economic growth an empirical investigation for the euro area. ECB Working Paper 1237. Available at: http://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1237.pdf. Accessed 14 February 2016.
  • Checherita-Westphal, C.; Rother, P. (2012). The impact of high government debt on economic growth and its channels: An empirical investigation for the euro area. European Economic Review 56(7): 1392–1405.
  • Lojsch, D., H.; Rodríguez-Vives, M.; Slavík, M. (2011). The size and composition of government debt in the euro area. ECB occasional paper series 132. Available at: https://www.ecb.europa.eu/pub/pdf/scpops/ecbocp132.pdf. Accessed 14 February 2016.
  • Eggertsson, G. B.; Krugman, P. (2012). Debt, Deleveraging, and the Liquidity Trap: A Fisher-Minsky-Koo Approack. Quarterly Journal of Economics 127 (3): 1469–1513.
  • Faraglia, E.; Marcet, A.; Oikonomou, R. (2013). The Impact of Debt Levels and Debt Maturity on Inflation. Economic Journal 123 (566): F164–F192.
  • Fincke, B.; Greiner, A. (2011). Do large industrialized economies pursue sustainable debt policies? A comparative study for Japan, Germany and the United States. Japan and the World Economy 23 (3): 202–213.
  • Governatori, M.; Eijffinger, S. (2004). Fiscal and monetary interaction: the role of asymmetries of the stability and growth. Pact in EMU 2004. CESIFO Working Paper 1354.
  • Greiner, A. (2012). Debt and Growth: Is There a Non-Monotonic Relation? Bielefeld Working Papers in Economics and Management 04-2012. Available at: http://pub.uni-bielefeld.de/luur/download?func=downloadFile&recordOId=2559613&fileOId=2559618. Accessed 14 February 2016.
  • Greiner, A. (2013). Sustainable Public Debt and Economic Growth under Wage Rigidity. Metroeconomica 64 (2): 272–292.
  • Holm-Hadulla, F.; Leiner-Killinger, N.; Slavík, M. (2011). The response of labour taxation to changes in government debt. ECB working paper series 1307. Available at: http://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1307.pdf. Accessed 14 February 2016.
  • International Monetary Fund. (2013). Public Sector Debt Statistics. Guide for Compilers and Users. Available at: http://www.tffs.org/pdf/method/2013/psds2013.pdf.
  • Irons, J.; Bivens, J. (2010). Government debt and economic growth. EPI Briefing Paper 271. Available at: http://www.epi.org/publication/bp271/. Accessed 14 February 2016.
  • Jaejoon, W.; Kumar, M., S. (2010). Public Debt and Growth. IMF Working Papers 10/174. Available at: http://www.imf.org/external/pubs/ft/wp/2010/wp10174.pdf. Accessed 14 February 2016.
  • Karazijienė, Ž.; Sabonienė A. (2009). Valstybės skolos struktūra ir valstybės skolinimosi įtaka Lietuvos ekonomikai. Ekonomika ir vadyba 14: 271–279.
  • Kregždė, A. (2012). Government debt sustainability: the Lithuanian case. Ekonomika 91 (3): 56–71.
  • Kumar, M., S.; Woo, J. (2010). Public Debt and Growth. IMF Working Paper WP/10/174. Available at: https://www.imf.org/external/pubs/ft/wp/2010/wp10174.pdf. Accessed 14 February 2016.
  • Legrenzi, G.; Milas, C. (2012). Nonlinearities and the sustainability of the government’s intertemporal budget constraint. Economic Inquiry 50 (4): 988–999.
  • Liliko, A.; Holmes, E.; Sameen, H. (2009). Controlling Spending and Government Deficits: Lessons from History and International Experience / Policy Exchange. Available at: http://www.policyexchange.org.uk/images/publications/controlling%20spending%20 and%20government%20deficits%20-%20nov%2009.pdf. Accessed 14 February 2016.
  • Martin, F. (2009). A Positive Theory of Government Debt. Review of Economic Dynamics 12 (4): 608–631.
  • Minenna, M. (2014). The European Public Debt Refinancing Program – Why the ECB Quantitative Easing Should Envisage Euro-Zone Government Bonds. Available at: http://ssrn.com/abstract=2497356. Accessed 14 February 2016.
  • Moinescu, B. G. (2013). The lending channel and budget balance: empirical evidences from Central and Eastern European economies. Theoretical and Applied Economics 3 (580): 17–30.
  • Molănescu, G.; Aceleanu, M. I. (2011). Consequences of the Budget Deficit in the Current Crisis in Romania. Implications on the Labor Market. Theoretical and Applied Economics 02 (555): 59–74.
  • Nenovsky, N.; Marinova, T. (2014). Sovereign debt during the crisis: comparative analysis between eastern and southern european countries. Working Papers 227. Available at: http://data.leo-univ-orleans.fr/media/seminars/165/WP_227.pdf. Accessed 14 February 2016.
  • Pieper, P. J.; Eisner, R. (1984). A New View of the Federal Debt and Budget Deficits. American Economic Review 74: 11–29.
  • Reinhart, C., M.; Rogoff, K., S. (2010). Growth in a Time of Debt. American Economic Review 100 (2): 1–9.
  • Reinhart, C., M.; Rogoff, K., S. (2011). A decade of debt. NBER Working Paper 16827. Available at: http://harrisdellas.net/teaching/diba12/Reinhart%20and%20Rogoff_11.pdf. Accessed 14 February 2016.
  • Ryskulov, U.; Mera, N. (2012). The Impact of Government Debtand Debt Servicing on Economic Growth: An Empirical Approach for Albania. Mediterranean Journal of Social Sciences 3 (5): 265–275.
  • Schclarek, A. (2004). Debt and Economic Growth in Developing and Industrial Countries. Lund University Working Papers 34. Prieiga per internetą: Available at: http://project.nek.lu.se/publications/ workpap/Papers/WP05_34.pdf. Accessed 14 February 2016.
  • Taylor, L.; Proano, Ch. R.; de Carvalho, L.; Barbosa, N. (2012). Fiscal deficits, economic growth and government debt in the USA. Cambridge Journal 36 (1): 189–204.
  • Vogel, E. (2014). Optimal level of government debt. Matching wealth inequality and the fiscal Sector. ECB working paper series 1665. Available at: http://www.ecb.europa.eu/pub/ pdf/scpwps/ecbwp1665.pdf.

Document Type

Publication order reference

Identifiers

ISSN
2081-8319

YADDA identifier

bwmeta1.element.desklight-06e0ee74-20e6-456f-9729-b05d43c1da8f
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.