ROLE OF DEBT STRUCTURE ON ECONOMIC GROWTH OF ADVANCED ECONOMIES
| Authors | |
|---|---|
| Year of publication | 2016 |
| Type | Article in Proceedings |
| Conference | 6th International Scientific Conference TAXES IN THE WORLD |
| MU Faculty or unit | |
| Citation | |
| Field | Economy |
| Keywords | Economic Growth; Public Debt; Structure of Public Debt; Sovereign Debt Crisis |
| Description | Since 2008 many countries suffer from weak economic growth performance which has been leading to sovereign debt crises in Eurozone periphery, USA, etc. The aim of this paper is to investigate effects of specific public debt categories on economic growth of advanced economies and based on econometric findings to conclude debt structure less harmful to growth. An empirical analysis employs panel data regression of OECD countries in period from 2000 to 2015. Public debt is divided into categories: original maturity of debt instruments, residency of creditors, currency of debt and sort of debt instrument. Main result is that the choice of public debt structure matters for growth. Although every significant debt category is detrimental to growth, the most negative impacts are of long-term debt instruments, debt in foreign currency, loans and credits, domestic debt. |
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