IDEAS home Printed from https://ideas.repec.org/a/aio/aucsse/v2y2019i47p13-24.html
   My bibliography  Save this article

The Impact Of Public Debt On Economic Growth

Author

Listed:
  • Maria Letitia Andronic (Brătulescu)

    (Transilvania University of Braşov Faculty of Economic Sciences and Business Administration)

Abstract

The general upward trend of public debt at global level is perceived to have a significant economic impact. This paper analyses the degree in which the public debt evolution in the European Union countries over the last two decades influences economic growth. The average results show moderate to low levels of correlation degrees. The modest impact between the two measures might be the consequence of the budgetary policies implemented in the EU with respect to the limits imposed to the public amounts borrowed especially in times of crises. The increased discipline in the use of public loans led to a more rigorous spending and to a more accurate analysis of the real needs bringing forward public investments. Nevertheless, the correlation in the countries with high public debts, as in the case of Greece, is more obvious, leading to the conclusion that economic recessions are also consequences of higher indebtedness levels.

Suggested Citation

  • Maria Letitia Andronic (Brătulescu), 2019. "The Impact Of Public Debt On Economic Growth," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 2(47), pages 13-24, December.
  • Handle: RePEc:aio:aucsse:v:2:y:2019:i:47:p:13-24
    as

    Download full text from publisher

    File URL: http://feaa.ucv.ro/annals/v2_2019/002.pdf
    Download Restriction: no

    More about this item

    Keywords

    public debt; economic growth; correlation analysis; financial crisis; budget deficit;

    JEL classification:

    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aio:aucsse:v:2:y:2019:i:47:p:13-24. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anca Bandoi). General contact details of provider: http://edirc.repec.org/data/fecraro.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.