Sovereign Finance: When Economic Growth and Sovereign Debt Are a Mismatch

2021 ◽  
pp. 403-440
Author(s):  
John E. Silvia
Keyword(s):  
Economic Growth ◽  
Sovereign Debt

External Debts and Economic Growth when Debt Rating Matters

2021 ◽  
Author(s):  
Ly Dai Hung
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Cross Section ◽  
Sovereign Debt ◽  
Developing Economies ◽  
External Debt ◽  
Fixed Effect ◽  
Panel Regression ◽  
Economic Growth Rate ◽  
Determinants Of Economic Growth

The paper investigates the dependence pattern of economic growth on external debt supply by accounting for the safety of debts, measured by the sovereign debt rating. The method of cross-section regression is based on a sample of 145 advanced and developing economies with averaged data over the 1990–2019 period. The pattern of economic growth follows a U-shaped curve, for which the growth rate is first decreasing and then increasing on the external debt supply. A possible explanation can rely on the sovereign debt rating. For low supply of external debts, more supply of debts reduces the debt rating, which, in turn, lowers the economic growth rate. But for high enough supply of debts, more debts raise their rating, improving the growth rate. These results are robust on controlling for various determinants of economic growth and on the fixed effect panel regression.

scholarly journals SUSTAINABLE DEVELOPMET FACETS: DOES SOVEREIGN DEBT ACCELERATE THE ECONOMIC GROWTH

2019 ◽  
pp. 675-687
Author(s):  
Sudawan Somjai ◽  
Saroge Vasuvanich ◽  
Akarapitta Meechaiwong ◽  
Watcharin Joemsittiprasert
Keyword(s):  
Economic Growth ◽  
Sovereign Debt

scholarly journals THE EFFECT OF SOVEREIGN DEBT ON ECONOMIC GROWTH: THE CASE OF OIL-RICH COUNTRIES

2020 ◽  
Vol 10 (2) ◽  
pp. 262-267
Author(s):  
Hussein Salameh ◽  
Ahmed Alodadi ◽  
Khaled Alzubi
Keyword(s):  
Economic Growth ◽  
Sovereign Debt ◽  
Rich Countries

STRATEGY TO ACHIEVE MACROECONOMIC STABILITY IN UKRAINE

2021 ◽  
Vol 298 (5 Part 1) ◽  
pp. 205-209
Author(s):  
LIUDMYLA SYTNYK ◽  
◽  
IELYZAVETA SHAKHOVALOVA ◽  
Keyword(s):  
Economic Growth ◽  
Natural Resources ◽  
Sovereign Debt ◽  
Banking Sector ◽  
Banking System ◽  
Sustainable Growth ◽  
Agricultural Products ◽  
Actual State ◽  
Export Policy ◽  
Growth Changes

The comprehensive analysis of domestic economy and it’s actual state undoubtedly confirms its steady transformation into a small, resource-based economy. Its also proves the absence of positive trends related to key factors for ensuring financial sustainability and attaining national security. Special attention is paid to factors in the fiscal sector (an increase in budget revenues based on economic growth as the result of changes in the volume of domestic and foreign trade, due to improvement in the financial results of enterprises and an increase in wages, as well as due to changes in direct tax receipts, and a decrease in the budget deficit); it is also analysed the debt sector (management of Ukraine’s sovereign debt); the detailed attention is given to banking sector (overcoming crisis phenomena in the banking system). Revealing the institutional problems, inefficiency of the public administration system we are justifying the implementation the number of measures in the areas of economic growth recovery, development of the internal market as the basis for sustainable growth, changes in the structure and activation of export policy. The expansion of small farming can be a trigger of the Ukrainian economy’s development. A significant part of the world’s natural resources is located in Ukraine. There is a significant increase in the number of populations worldwide, as well as an increase in soil deficiency suitable for agriculture. Since Ukraine is an agricultural country and most of its lands are suitable for the production of agricultural products – it gives it significant advantages for both self-sufficiency and economic development. Ukraine has always been and remains an agrarian country. Most of its’ lands are suitable for the growing of agricultural products and it gives Ukraine the significant self-sustaining advantages for both exponential growth and supporting of country’s economy. Small farming stays the main factor of the agrarian sector’s development, it supports the economy and helps to sustain the natural resources of Ukraine.

Fixing Azerbaijani bank may dent sovereign's image

2017 ◽  
Keyword(s):  
Economic Growth ◽  
Sovereign Debt ◽  
Banking Sector ◽  
Banking System ◽  
The State ◽  
Content Type ◽  
The Government

Significance If two-thirds of creditors agree to the scheme by a July 13 meeting, the government will exchange IBA debt for sovereign loans but it has made it clear it does not bear responsibility for the state-owned bank's liabilities. Impacts Banking sector instability has negative implications for confidence and economic growth. The potential increases in sovereign debt appear manageable. Reducing the size of IBA will bring more competition to the banking system.

scholarly journals Examining The Employment Intensity Of Economic Growth Of The PIIGS

2014 ◽  
Vol 13 (3) ◽  
pp. 593
Author(s):  
William Seyfried
Keyword(s):  
Economic Growth ◽  
Sovereign Debt ◽  
The Other ◽  
Unemployment Rates ◽  
Temporary Contracts ◽  
Highly Sensitive ◽  
Employment Elasticity ◽  
High Employment ◽  
Very High ◽  
Double Digit

At the beginning of the second decade of the 21st century, several countries in the periphery of Europe began suffering from sovereign debt crises, resulting from and contributing to economic weakness. As of late 2013, each country was struggling with double-digit unemployment rates with rates in Greece and Spain near 27%. Though economic weakness was responsible for falling employment, the linkage between economic growth and employment, known as the employment intensity of economic growth (also called employment elasticity), may differ between nations. Estimation of models developed reveal different dynamics in the respective countries. Regardless of the model employed, the results revealed a very high employment intensity of economic growth in Spain relative to the other nations, indicating that employment was highly sensitive to changes in economic growth. As such, an equivalent decline in GDP had a much larger impact on employment in Spain than the other PIIGS. There is evidence that the structure of the labor market may play some role in explaining different employment elasticities for the countries in question. In particular, the degree of unionization appeared to be negatively correlated with employment intensity (economic growth had a smaller impact on employment in nations that have a larger percentage of unions) while the portion of workers on temporary contracts was positively correlated with employment intensity; countries with a larger percentage of workers on temporary contracts, such as Spain, had a higher employment intensity as employment responded more to changes in economic growth.

scholarly journals Debt-Oriented Growth Efforts & the Inevitable End: The Eurozone Sovereign Debt Crisis

2016 ◽  
Vol 2 (1) ◽  
pp. 86
Author(s):  
Deniz Zungun ◽  
Emine Turkan Ayvaz Guven
Keyword(s):  
Economic Growth ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Public Expenditures ◽  
Capital Investments ◽  
Long Term Effects ◽  
Oriented Growth ◽  
Euro Zone ◽  
Economic Growth Rates

<p><em>This study tries to reveal the unsustainable long-term effects of public expenditures, which are extended based on loan between 2000 and 2015 in 18 Euro zone countries, on economic growth. The countries located in Euro zone chose a way to obtain economic growth by directly lowering taxes on foreign capital investments in the subject period. However, while they could achieve this purpose especially between 2006 and 2007, by 2008 which is subsequent to aforementioned years, they increase their countries’ debt loads and thusly public expenditures extremely. Therefore, these countries which applied austerity policies by 2010 to lower the expenses faced sharp declines of their economic growth rates when they achieved their aims. For this reason, even if Euro zone countries continue to apply various policies today, they have difficulty in redressing their macroeconomic balance because of the effects of debt crisis. Since the solution does not lie behind having a debt-growth which is aimed at increasing public expenditures; it lies behind a foreign trade-oriented growth aimed at developing the production. </em></p>

Sign in / Sign up

Export Citation Format

Share Document