scholarly journals Social development and public debt sustainability

2021 ◽  
Vol 14 (2) ◽  
pp. 79
Author(s):  
Chara Vavoura ◽  
Ioannis Vavouras
Keyword(s):  
Fiscal Policy ◽  
Social Development ◽  
Public Debt ◽  
Debt Crisis ◽  
Necessary Condition ◽  
Debt Sustainability ◽  
Long Run ◽  
Policy Measures ◽  
Of Greece

The issue of public debt sustainability is of exceptional importance in the case of Greece. As a rule, the relevant analysis is limited to the examination of the fiscal policy measures reported to contribute to reducing public debt leaving out the investigation of the factors that caused the country’s debt crisis. The objective of the present paper is to explore the determinants of Greece’s debt crisis and the strategy required to address it. Our work highlights the issue of social development, which is found to be a necessary condition for ensuring the long run sustainability of the country’s public debt.

scholarly journals Public Debt and External Reserve: The Nigerian Experience (1981–2013)

2016 ◽  
Vol 2016 ◽  
pp. 1-7 ◽  
Author(s):  
Victoria Senibi ◽  
Emmanuel Oduntan ◽  
Obinna Uzoma ◽  
Esther Senibi ◽  
Akinde Oluwaseun
Keyword(s):  
Public Debt ◽  
Debt Crisis ◽  
Foreign Debt ◽  
Secondary Data ◽  
Economic Policies ◽  
Interest Payment ◽  
Endogenous Factors ◽  
Long Run ◽  
Domestic Savings ◽  
The Impact

Nigeria is confronted with the issue of limited capital and has to resort to foreign debt in order to augment domestic savings, balance of payment deficits, and shortfall in revenue which induce continuous raise in the debt stock at an alarming rate. In the light of this, this study assesses the impact of public debt on external reserve in Nigeria. The objectives of this study include the assessment of the trends and relationship between public debt and external reserve in Nigeria, using the Johansen cointegration and FMOLS technique on the secondary data from 1981 to 2013. The result revealed that public debt has a positive and significant effect on external reserve stock in the long run suggesting that the nation’s debt crisis can be attributed to both exogenous and endogenous factors such as the nature of the economy, economic policies, high dependence on oil, and swindling foreign exchange receipt. This study recommends that the federal government should employ more superior method to negotiate for fixed interest payment and varying amortization schemes, as well as seek multiyear rescheduling rather than year by year basis.

scholarly journals The sustainability of public debt in Romania in economic and financial crisis

2010 ◽  
Author(s):  
Marian Dobranschi
Keyword(s):  
Fiscal Policy ◽  
Public Debt ◽  
Debt Management ◽  
Policy Action ◽  
Financial Transfers ◽  
Long Run ◽  
Fiscal Restraint ◽  
Private And Public ◽  
Sustainability Of Public Debt ◽  
Real Returns

Public finances are key driver in the EU for economic recovery as the debth of the recession and credit constraints require fiscal policy action. This paper emphasis the needed review of public debt and its role in economic development as a particular challenge for emerging economies such as Romania. We explore the most important effects of public debt on economic growth like crowding-out effect, the realtionship between private and public financial transfers, the effect of public debt over GDP growth, inflation and on the sustainability of fiscal policy on the long run. Finnaly we estimate that the composition of public debt can suport debt stabilization and how debt management can stabilize the debt to GDP ratio in face to real returns and outputs growth and thus supports fiscal restraint in ensuring sustainability.

scholarly journals The role of military expenditure and arms imports in the Greek debt crisis

2016 ◽  
Vol 11 (1) ◽  
Author(s):  
Eftychia Nikolaidou
Keyword(s):  
Public Debt ◽  
Debt Crisis ◽  
Empirical Work ◽  
Interesting Case ◽  
Military Expenditure ◽  
The European Union ◽  
Long Run ◽  
Short Run ◽  
The Impact

Despite the vast amount of empirical work performed on the defense–growth relationship, the impact of military expenditure on public debt is a largely neglected topic. The recent Greek debt crisis brought to the forefront the role of military expenditure as well as the inefficiencies and the inability of the EU to deal with the European debt crisis. This article investigates the role of military expenditure (among other factors) in the evolution of the Greek debt over the period 1970-2011. Greece is a particularly interesting case in this regard, given its high military burden since 1974 and the recent debt crisis that led the country to sign a bail-out package presented by the European Union, the European Central Bank, and the International Monetary Fund, which involves extreme austerity measures and cuts in public spending. Employing the ARDL approach to cointegration, this article concludes that military expenditure and arms imports have had an adverse (i.e., increasing) effect on Greek public debt in the short-run, while investment has helped to reduce debt both in the short- and the long-run.

scholarly journals Impact of public debt sustainability on fiscal policy in Croatia

2018 ◽  
Vol 68 (2) ◽  
pp. 231-244
Author(s):  
Hrvoje Šimović
Keyword(s):  
Fiscal Policy ◽  
Public Debt ◽  
Government Spending ◽  
Negative Impact ◽  
Structural Var ◽  
Extended Model ◽  
Closed Model ◽  
Debt Sustainability ◽  
Debt Level ◽  
The Impact

This paper analyses the impact of public debt level and its (un)sustainability on fiscal policy in Croatia in the 2001–2015 period. A switching regression approach is used to distinguish different regimes when government spending, i.e. fiscal policy has more or less impact on economic growth during different cycles. In the second part, the structural VAR model is used to analyse the dynamic effects of government spending on domestic demand in Croatia. To observe the public debt effects on a fiscal policy, a “closed” model is compared with an “extended” model which includes a debtto- GDP indicator. Results show a negative impact of recession on public debt sustainability and confirm the main thesis that public debt level significantly affects and reduces the effectiveness of fiscal policy in Croatia.

Mopani deal will exacerbate Zambia's debt crisis

2021 ◽  
Keyword(s):  
Monetary Policy ◽  
Public Sector ◽  
Central Bank ◽  
Public Debt ◽  
Debt Crisis ◽  
Strategic Partner ◽  
Debt Sustainability ◽  
Content Type ◽  
Resource Nationalism ◽  
The Government

Significance This boosts President Edgar Lungu's re-election prospects in August, but ZCCM-IH will struggle to find a 'strategic partner' to replace Glencore. Mounting public debt will undermine efforts to convince the IMF that the government has a path to debt sustainability, depriving Zambia of access to concessional lending and stalling negotiations with bondholders. Impacts Resource nationalism will play well on the Copperbelt, improving the ruling party’s prospects in a region key to securing a poll victory. With little chance of an IMF deal, Lungu will likely make further pre-poll gestures, such as salary increases for public-sector workers. Monetary policy is also likely to suffer, with the central bank under pressure to fund the government's reckless borrowing.

scholarly journals Fiscal policy in an open economy

2016 ◽  
Vol 16 (1) ◽  
Author(s):  
Amit Friedman ◽  
Zvi Hercowitz ◽  
Jonathan Sidi
Keyword(s):  
Fiscal Policy ◽  
Open Economy ◽  
Public Debt ◽  
Government Spending ◽  
Tax Rates ◽  
Productivity Shocks ◽  
Policy Regime ◽  
Domestic Production ◽  
Long Run ◽  
Macroeconomic Implications

AbstractThis paper analyzes the quantitative macroeconomic implications of a fiscal policy regime based on exogenous tax rates paths and public debt/GDP target in an open economy. In this setup, government spending accommodates tax revenues and target deficits. In particular, we concentrate on pre-announced tax cuts, as well as on the adoption of a lower debt target – following policies conducted in Israel during the 2000s. We construct a model where domestic production requires imported inputs, and simulate the effects of these policies. The analysis focuses on the dynamics generated by the announcements of these policy steps, followed by their implementation. The model has the implication that a credible announcement of a future tax cut has an expansionary effect on impact, similar in nature to the effects of productivity shocks. Also, the model implies that the announcement of a lower public debt/GDP target has a contractionary effect, while it’s implementation leads to higher output in the long-run.

The Construction Sector in Mozambique

2020 ◽  
pp. 183-208
Author(s):  
António S. Cruz ◽  
Francisco Fernandes ◽  
Fausto J. Mafambissa ◽  
Francisco Pereira
Keyword(s):  
Human Capital ◽  
Economic Development ◽  
Debt Crisis ◽  
Construction Sector ◽  
Construction Costs ◽  
Construction Companies ◽  
Long Run ◽  
Policy Measures

Mozambique’s construction sector has long played an important role in the economy. However, this sector has proven to be vulnerable to economic fluctuations, such as those which emerged after 2014 with the macroeconomic and debt crisis, and faces challenges which need to be addressed through long-term sector policies. International experience shows that investment in infrastructure and human capital can play a key role in economic development by enabling expansion in activities, deeper intersectoral integration, and structural transformation in the long run. However, when countries face high construction costs, this can negatively affect the quality of public infrastructures. Moreover, bottlenecks affecting construction companies prevent them from expanding, which leads to an increase in costs and prices when there is a surge in demand. This chapter aims both to identify the main bottlenecks affecting the sector and to present some policy measures.

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