Public Debt and Economic Growth. Measuring the Long Run Impact in Latin America: 1970-2016

Authors

DOI:

https://doi.org/10.5377/reice.v7i14.9372

Keywords:

Public Duet, Growth, Model DOLS

Abstract

In this work, a measurement is made of the long-term impact of the total gross debt of the central government on the growth of the Real Gross Product for a group of Latin American countries, in the period 1970-2016. For this, cointegration contrasts are used and a dynamic panel data model (DOLS - Dynamic Old Last Squared) is estimated. The evidence indicates that an additional 1% in total government gross debt as a percentage of GDP leads to a reduction in the real GDP growth rate of 0.026%. These results change significantly when Nicaragua is included in the analysis, by virtue of the outliers presented in the debt / GDP ratio by the country for the years 1989 and 1990.

 

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http://www.carmenreinhart.com/data/ Último acceso: 7 de agosto de 2019.

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Published

2020-02-05

How to Cite

Rabanal, C., & Helbig, J. (2020). Public Debt and Economic Growth. Measuring the Long Run Impact in Latin America: 1970-2016. Revista Electrónica De Investigación En Ciencias Económicas, 7(14), 27–41. https://doi.org/10.5377/reice.v7i14.9372

Issue

Vol. 7 No. 14 (2019): Junio-Diciembre

Section

Research Articles

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