|تعداد مشاهده مقاله||104,968,599|
|تعداد دریافت فایل اصل مقاله||82,040,405|
The Relationship between the Public Debt and Economic Growth: An Analysis of PIIGS Countries
|Iranian Economic Review|
|مقاله 10، دوره 23، شماره 3، مهر 2019، صفحه 733-747 اصل مقاله (437.15 K)|
|شناسه دیجیتال (DOI): 10.22059/ier.2019.71796|
|Nazife Özge Kılıç ؛ Murat Beşer|
|Faculty of Economics and Administrative Sciences, Agri Ibrahim Cecen University, Agri, Turkey|
he financial crisis that was started in the last months of 2008, spread out to all world countries in short-term and had broken out as public debt in the European Union and Euro area. Most affected countries from this financial crisis had been Portugal, Ireland, Italy, Greece, and Spain were named as PIIGS countries of Europe. The effect of public debt on economic growth had been analyzed for PIIGS countries in this study. First, cross-sectional dependency and homogeneity tests had been performed for variables. The existence of cointegration between series had been analyzed by cointegration test with a multi-structural break is developed by Westerlund (2009). While cross-sectional dependency has been determined for general of the panel at the result of the analysis made, it has been seen that series are not stationary in the level and they become stationary when their first differences are taken. In addition, it had been found that there is cointegration between series at the result of cointegration that considers structural breaks.
|Keywords: Economic Growth؛ Panel Data Analysis؛ Public Debt. JEL Classification: E6؛ E60؛ F4|
Akçay, B. (2012). The Relationship between State Debt Crisis and Current Account Deficit in Greek Economy. Journal of Finance, 163, 15-35.
Basher, S. A., & Westerlund, J. (2009). Panel Cointegration and the Monetary Exchange Rate Model. Economic Modelling, 26, 506-513.
Baum, A. C. W., & Rother, P. (2013). Debt and Growth: New Evidence for the Euro Area. Journal of International Money and Finance, 32, 809-821.
Breusch, T. S., & Pagan, A. R. (1980). The Lagrange Multiplier Test and Its Application to Model Specification in Econometrics. Review of Economic Studies, 47, 239-254.
Cecchetti, S. G. M., Mohanty, M. S., & Zampolli, F. (2011). The Real Effects of Debt. BIS Working Papers, 352, Retrieved from https://www.bis.org/publ/work352.pdf.
Checherita-Westphal, C., & Rother, P. (2010). The Impact of High Government Debt on Economic Growth and its Channels: An Empirical Investigation for the Euro Area. European Economic Review, 56(2012), 1392-1405.
Cordella, T. R., Ricci, L. A., & Ruiz-Arranz, M. (2005). Debt Overhang or Debt Irrelevance? Revisiting the Debt-Growth Link. IMF Working Paper, WP/05/223, Retrieved from
Gomez-Puig, M., & Sosvilla-Rivero, S. (2017). Public Debt and Economic Growth: Further Evidence for the Euro Area. Research Institute of Applied Economics, 51, 470-486.
Im, K. S., Pesaran, M. H., & Shin. Y. (2003). Testing for Unit Roots in Heterogeneous Panels. Journal of Econometrics, 115, 53-74.
Kumar, M. S., & Woo, J. (2010). Public Debt and Growth. IMF Working Paper, WP/10/174, Retrieved from
Matiti, C. (2013). The Relationship between Public and Economic Growth in Kenya. International Journal of Social Sciences and Project Planning Management, 1(1), 65-86.
Mencinger, J., & Aristovnik, A. (2013). The Impact of Public Debt on Growth: A Comparative Analysis of Old and New EU Member States. Retrieved from
Mousa, T. A., & Shawawreh, M. A. (2017). The Impact of Public Debt on the Economic Growth of Jordan: An Empirical Study (2000-2015). Accounting and Finance Research, 6(2), 114-120.
O’Connell, P. (1998). The Overvaluation of Purchasing Power Parity. Journal of International Economics, 44, 1-19.
Özcan, B., & Arı, A. (2011). The Relationship between Financial Development and Economic Growth: An Empirical Analysis: The Case of Turkey. Business and Economics Research Journal, 2(1), 121-142.
Peseran, H. M. (2004). General Diagnostic Tests for Cross Section Dependence in Panels. Discussion Paper, 1240, Retrieved from
Presbitero, A. F. (2012). Total Public Debt and Growth in Developing Countries. The European Journal of Development Research, 24(4), 606 – 626.
Reinhart, C. M., & Rogoff, K. S. (2010). Growth in a Time of Debt. American Economic Review, 100(2), 573-578.
Zouhaier, H., & Fatma, M. (2014). Debt and Economic Growth. International Journal of Economics and Financial Issues, 4(2), 440-448.
تعداد مشاهده مقاله: 516
تعداد دریافت فایل اصل مقاله: 428