Growth-maximizing public debt in Turkey: An empirical investigation

• Authors: Gokay Canberk Bulus

Abstracts

EN

The aim of the paper is to empirically estimate the growth-maximizing debtto-GDP ratio in the case of Turkey. To calculate the growth-maximizing debt-to-GDP ratio FMOLS, DOLS, and CCR estimators are used for the period from 1960–2013. According to the empirical findings the growth-maximizing debt-to-GDP ratio varies between 34.3% and 38.7%. Based on a comparison of these ratios to current data (29.1% for 2018), Turkey has the capacity for additional borrowing to achieve a growthmaximizing debt-to-GDP ratio. If this additional borrowing capacity is used for public investment with a return greater than the interest cost of the additional debt economic growth will be maximized and public debt sustainability supported.

Keywords

EN

public debt; economic growth; fiscal rule; Turkish economy

• Publisher: Uniwersytet Ekonomiczny w Poznaniu
• Journal: Economics and Business Review
• Year: 2020
• Volume: 6(20)
• Issue: 3
• Pages: 68-87

Contributors

author

Gokay Canberk Bulus

• Aksaray University, Faculty of Economics and Administrative Sciences, Department of Economics, Turkey

Identifiers

DOI

10.18559/ebr.2020.3.4

Biblioteka Nauki

1837949