Long-Run Implications of Public Debt on Economic Growth
Many European countries faced with large fiscal deficits have adopted great plans of austerity to limit their public debt. In Romania, despite many measures to reduce public sector wages and some social allowances, in the 2009 and 2010 has been recorded only a small contraction of governmental expenditure but a fast growing public debt. However, the main effects of the austerity measures have materialized in a significant reduction in domestic demand and an important reduction of gross domestic product. Also, despite a substantial reduction of supply, the unemployment rate has not exceeded 8% in Romania. This paper aims to analyze how much the policies restricting budget deficit and public debt in Romania delayed the resumption of economic growth. Even the euro adoption perspective impose a stricter management of Romanian budgetary policies and other nominal convergence criteria, the hard core of economic policies must be the reinventing a new path to sustainable growth. It is necessary to conclude a new financing agreement with IMF for the next two years? We also intend to test the tolerance degree of the Romanian economy to public debt expansion (according to Reinhart&Rogoff model, 2010) as reflected in the growth rate of real gross domestic product.
Volume (Year): (2011)
Issue (Month): 2(2) (June)
|Contact details of provider:|| Web page: http://journals.univ-danubius.ro/index.php/oeconomica/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Andrea F. Presbitero, 2010.
"Total Public Debt and Growth in Developing Countries,"
Development Working Papers
300, Centro Studi Luca d\'Agliano, University of Milano.
- Andrea F Presbitero, 2012. "Total Public Debt and Growth in Developing Countries," The European Journal of Development Research, Palgrave Macmillan, vol. 24(4), pages 606-626, September.
- Andrea Filippo Presbitero, 2010. "Total public debt and growth in developing countries," Mo.Fi.R. Working Papers 44, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
- Barro, Robert J, 1979.
"On the Determination of the Public Debt,"
Journal of Political Economy,
University of Chicago Press, vol. 87(5), pages 940-71, October.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2010.
"Growth in a Time of Debt,"
American Economic Review,
American Economic Association, vol. 100(2), pages 573-78, May.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2010. "Growth in a Time of Debt," NBER Working Papers 15639, National Bureau of Economic Research, Inc.
- Reinhart, Carmen M. & Rogoff, Kenneth S., 2010. "Growth in a Time of Debt," Scholarly Articles 11129154, Harvard University Department of Economics.
- Reinhart, Carmen M. & Rogoff, Kenneth, 2010. "Growth in a Time of Debt," CEPR Discussion Papers 7661, C.E.P.R. Discussion Papers.
- Aurel Iancu, 2008.
Review of Economic and Business Studies,
Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 2, pages 53-73, November.
- Iancu, Aurel, 2009. "Nominal Convergence," Working Papers of National Institute of Economic Research 090602, National Institute of Economic Research.
- Talvi, Ernesto & Vegh, Carlos A., 2005. "Tax base variability and procyclical fiscal policy in developing countries," Journal of Development Economics, Elsevier, vol. 78(1), pages 156-190, October.
When requesting a correction, please mention this item's handle: RePEc:dug:actaec:y:2011:i:2:p:83-91. 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: (Daniela Robu)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.