scholarly journals Corruption, Investment and Economic Growth in Developing Countries: A Panel Smooth Transition Regression Approach

2018 ◽  
Vol 2 (1) ◽  
Author(s):  
Yann Harold Nounamo Nguedie ◽  
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Smooth Transition ◽  
Regression Approach ◽  
Smooth Transition Regression ◽  
Panel Smooth Transition Regression

scholarly journals Has Local Government Debt Promoted Economic Growth in developing countries? New evidence from a survey in China

2021 ◽  
Vol 235 ◽  
pp. 01014
Author(s):  
Tao Wu ◽  
Peng Zhong ◽  
Lingyue Wu
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Local Government ◽  
Local Governments ◽  
Bond Market ◽  
Smooth Transition ◽  
Government Bond ◽  
Open Market ◽  
Government Investment ◽  
Smooth Transition Regression

Based on the panel smooth transition regression (PSTR) model, this paper empirically analyzes the relationship between Chinese local government’s bond financing and economic growth, with the quarterly panel data of bonds issued by local governments and their investment and financing platform companies in the open market from 2008 to 2018 as samples. The research shows that there is a gradual non-linear relationship between local government bond market financing and economic growth in China. With the increase of the scale of local government bond market financing in China, the effect of bond market financing on economic growth will gradually decline and have a negative effect. This result means that for developing countries like China, it is not advisable to rely solely on government investment to drive economic growth.

Asymmetric and threshold effects of public debt on economic growth in SADC: a panel smooth transition regression analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bongumusa Prince Makhoba ◽  
Irrshad Kaseeram ◽  
Lorraine Greyling
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Threshold Effect ◽  
Smooth Transition ◽  
Content Type ◽  
Advanced Economies ◽  
Smooth Transition Regression ◽  
Asymmetric Relationships ◽  
Panel Smooth Transition Regression

PurposeThis study aims to interrogate dynamic asymmetric relationships between public debt and economic growth in Southern African Developing Communities (SADC), over the period 2000–2018.Design/methodology/approachThe study employed a panel smooth transition regression (PSTR) technique to analyse dynamic asymmetric relationships between public debt and economic growth, and the threshold effect at which public debt hampers economic growth.FindingsThe findings indicate that there is a significant nonlinear effect of debt on economic growth in SADC. The study discovered a debt threshold of 60% to GDP at which debt beyond this threshold deteriorates long-term growth. The low-debt regime was found to be positive and statistically significant, while the high-debt regime is detrimental for long-term growth. Fiscal policymakers ought to consider the adoption of well-coordinated debt policies that aims to strike a balance between sustainable public debt and economic growth, within a reasonable threshold target.Originality/valueThe study focusses on asymmetric and threshold analysis of public debt on economic growth in SADC using sophisticated panel smooth transition regression (STAR). This study provides rigorous empirical evidence within the SADC perspective in which previous studies have predominantly been confined in advanced economies.

Sign in / Sign up

Export Citation Format

Share Document