scholarly journals IMPACT OF THE GOVERNMENT DEBT ON ECONOMIC DEVELOPMENT OF COUNTRY

2019 ◽  
pp. 23-36
Author(s):  
Taras MARSHALOK ◽  
Ivanna MOROZ
Keyword(s):  
Economic Development ◽  
Public Debt ◽  
Positive Impact ◽  
Developed Countries ◽  
Research Process ◽  
The Public ◽  
Long Run ◽  
The World ◽  
The Government ◽  
The Eu

Introduction. An increase in public debt may have a negative, neutral or positive impact on the country's economic development. A big loan does not mean big growth; it all depends on how the public money is spent. The same amount of money spent by governments from dif­ferent countries has a different meaning for domestic development and the dynamics of public debt. The reasons are differences in the size of GDP, the structure of government borrowings, the shadow economy. Purpose. The objective of this paper is to deepen the theoretical backgrounds and applied aspects of influence of the public debt on the economic development of the country. Methods. In the research process, a set of research methods and approaches were used: systemic, structural-functional, comparisons and others. Results. The problem of a high level of public debt is acute in many countries throughout the world, including Ukraine. Nobody can say for sure whether a high public debt holds back the country's economic development. Theoretically, economically weaker countries, having regard to the financial constraints and economic needs, should have a higher level of public debt in relation to GDP than countries with high levels of development. However, comparing the data on the ratio of public debt and GDP in the EU, it can be noted the following: the higher indicators in the more developed countries of the EU. The latter, in fact, are the largest lenders of the world economy and at the same time have the largest volumes of the public debt both in absolute terms and in relation to GDP. As a result of the unsatisfactory financial state of the public sector, household saving goes to the repayment of the higher-level commitments, and not for the financing of the development of companies. This is especially problematic if we look at the situation of future generations – they will have less capital at their disposal. Public debt is a reduction in future revenues; hence, it is an intergenerational problem. Conclusions. It is possible to make proposals that will have a significant impact on the growth of the economy and the reduction of the public debt: – internal borrowing but not the external loans are economically justified. In this case, the debts do not increase the money base and the turnover of funds is carried out within the state; – entrepreneurship requires the systematic and consistent support that will stimulate the economic development, which needs stable business conditions in the long run.

IMPACT OF GOVERNMENT DEBT ON FINANCIAL SECURITY OF UKRAINE

2017 ◽  
Author(s):  
Olena Pikaliuk ◽  
◽  
Dmitry Kovalenko ◽  
Keyword(s):  
Economic Development ◽  
Public Debt ◽  
Positive Impact ◽  
The State ◽  
Financial Security ◽  
State Budget ◽  
The Public ◽  
Debt Security ◽  
The Stability ◽  
The Impact

One of the main criteria for economic development is the size of the public debt and its dynamics. The article considers the impact of public debt on the financial security of Ukraine. The views of scientists on the essence of public debt and financial security of the state are substantiated. An analysis of the dynamics and structure of public debt of Ukraine for 2014-2019. It is proved that one of the main criteria for economic development is the size of public debt and its dynamics. State budget deficit, attracting and using loans to cover it have led to the formation and significant growth of public debt in Ukraine. The volume of public debt indicates an increase in the debt security of the state, which is a component of financial security. Therefore, the issue of the impact of public debt on the financial security of Ukraine is becoming increasingly relevant. The constant growth and large amounts of debt make it necessary to study it, which will have a positive impact on economic processes that will ensure the stability of the financial system and enhance its security.

Does transportation infrastructure impact economic growth in India?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sreenu Nenavath
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Positive Impact ◽  
Transport Infrastructure ◽  
Causality Test ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
The Government ◽  
Determinants Of Economic Growth

Purpose This paper aims to show a long run and causal association between economic growth and transport infrastructure. Design/methodology/approach In this study, the authors use ARDL models through the period 1990 – 2020 to investigate the relationship between transport infrastructure and economic growth in India. Findings The infrastructure has a positive impact on economic growth in India for the long run. Moreover, Granger causality test demonstrates a unidirectional relationship between transport infrastructure to economic development. Stimulatingly, the paper highlights the effect of air infrastructure statistically insignificant on economic growth in the long and short-run period. Originality/value The original outcome from the study delivers an inclusive depiction of determinants of economic growth from transport infrastructure in India, and these findings will help the policymakers to frame policies to improve the transport infrastructure. Hence, it is proposed that the government of Indian should focus more to upsurge the transport infrastructure for higher economic development.

scholarly journals THE ENDOGENOUS DETERMINATION OF RETIREMENT AGE AND SOCIAL SECURITY BENEFITS

2012 ◽  
Vol 18 (1) ◽  
pp. 93-113 ◽  
Author(s):  
Francisco Cabo ◽  
Ana García-González
Keyword(s):  
Social Security ◽  
Public Debt ◽  
Nonlinear Dependence ◽  
Retirement Age ◽  
The Public ◽  
Long Run ◽  
The Government ◽  
Pension Benefits ◽  
Social Security Benefits

An aging population in modern societies has put stress on public pension systems. To prevent social security deficits from increasing to unbounded levels of public debt we focus on two policies: reducing the generosity of pension benefits, determined by the government, and postponing the effective retirement age, chosen by employees. An atomistic employee would disregard the effect of his retirement decision on the public debt and would retire as soon as possible. Conversely, an ideal farsighted agency considering all current and future employees would postpone retirement, thereby alleviating the pressure on public debt and allowing a more generous long-run pension. The government may design a proper incentive strategy to induce myopic atomistic decision makers to act nonmyopically. This strategy is a two-part incentive with nonlinear dependence on the stock of public debt. It is credible if deceiving employees slightly adjust their retirement-age decisions to increments in the public debt.

Crisis in Greece

2011 ◽  
pp. 70-78
Author(s):  
Y. Kvashnin
Keyword(s):  
Public Debt ◽  
World Economy ◽  
Medium Term ◽  
Quick Recovery ◽  
The World ◽  
Policy Challenge ◽  
The Government ◽  
Near Future ◽  
Of Greece ◽  
The Eu

The author points out that, despite some success in 2010, the medium-term prospects of Greece do not inspire much optimism. Even in the case of a quick recovery of the world economy in the next two years (which is highly questionable), the country will face a continuation of the recession. It is very likely that in the near future the government will have to restructure public debt, which reached 125% of GDP by 2010. Besides that, Greece faces a very difficult foreign policy challenge, that is to restore the credibility from the EU and to prove that Greece’s admittance to the Eurozone was not a mistake.

Sudden Lockdown and Unseen Challenges in India due to COVID19: An Outbreak Analysis (Preprint)

2020 ◽  
Author(s):  
Neeraj Taneja ◽  
Aftab Alam ◽  
Ranjana S Patnaik ◽  
Tannu Taneja ◽  
Arun Bhardwaj ◽  
...  
Keyword(s):  
General Public ◽  
Developed Countries ◽  
Collateral Damage ◽  
Developing Nation ◽  
Long Run ◽  
The World ◽  
The Government ◽  
Populous Country

UNSTRUCTURED The world is facing an unprecedented situation, because of spread of coronavirus that causes the disease COVID-19 which is totally new, where no one can see light at the end of the tunnel. In last 3 months, this pandemic has spread to 204 countries, regardless of its being developed, developing or under developed. In comparison to developed countries and being a developing nation, India has to date curtailed the spread of virus to stage 2 of local transmissions, by limiting its progression. The government of India together with its states has taken stringent actions to prevent its spread, including a nationwide lockdown. The sudden lockdown in country of 1.4 billion have brought in many unseen challenges, which has created panic, confusion and inconvenience to the general public at large. Though the remedial steps are taken, but that may cause collateral damage in the long run, if not planned earlier. The main objective of the article is to apprise the world about certain hard realities, ignored situations and unseen challenges that are being faced by world’s 2nd most populous country due to sudden locking down.

Међузависност ризика неплаћања јавног дуга и солвентности земаља чланица монетарне уније // The Correlation between the Risk of Default and Solvency of Member States of the Monetary Union

2018 ◽  
Vol 13 (23) ◽  
pp. 69
Author(s):  
Бранка Топић-Павковић
Keyword(s):  
Interest Rates ◽  
Monetary Union ◽  
Public Debt ◽  
Debt Crisis ◽  
Causal Connection ◽  
Member States ◽  
Government Bonds ◽  
The Public ◽  
The Government ◽  
The Eu

Резиме: Дужничка криза у земљама Европске монетарне уније истакла је значај вођења одговорне фискалне политике, посебно у оквиру питања одрживости јавног дуга и солвентности земаља чланица. Општа правила за контролу нивоа јавног дуга, уведена у ЕУ, предвиђају обавезујуће мјере за све чланице када њихов јавни дуг пређе границу од 60% БДП-а, као и правила о максималном износу удјела дефицита у БДП-у. Интензитет дужничке кризе одређен је повјерењем инвеститора које зависи од економских фундамената, али и процјене да ли ће влада досљедно измиривати своје обавезе. Циљ истраживања јесте да утврдимо да ли је однос дуга према БДП-у позитивно корелисан са кретањем каматних стопа на државне обвезнице и да одредимо степен њихове повезаности. На узорку од 17 земаља чланица ЕМУ и временским интервалима преткризног и кризног периода, корелационом и регресионом анализом указујемо на узрочно-посљедичну повезаност наведених индикатора и њихов утицај на солвентност земље. Резултати показују да се у случају кризе јавног дуга услијед повећања каматних стопа на дугорочне државне обвезнице, значајно повећава удио јавног дуга у БДП-у што води расту ризика неплаћања дуга и посљедично несолвентности земаља чланица. Фискални аспект интеграције БиХ, посматрани кроз призму фискалних критеријума ЕУ, показују минимална одступања од референтних вриједности. Међутим, имајући у виду да кретање нивоа јавног дуга, те његово сервисирање, директно зависе од степена повећања/смањења БДП-а, извоза и расположивог прихода за сервисирање дуга, одлуке о даљем задужи- вању морају бити повезане са производним пројектима или финансирањем пројеката који ће допринијети даљем привредном расту и расту конку- рентности.Summary: The debt crisis in the European Monetary Union, emphasized the importance of keeping a responsible fiscal policy, especially in the context of issues of public debt sustainability and solvency of the member countries. Common rules for control of the public debt was introduced in the EU provide for mandatory measures for all Member States when their public debt exceeds the limit of 60% of GDP, as well as rules on the maximum amount of deficit percentage of GDP. The intensity of the debt crisis is determined by the confidence of investors, which depends on economic fundamentals as well as assessing whether the government will consistently meet their obligations. The aim of the research is to determine whether the ratio of debt to GDP positively correlated to movements in interest rates on government bonds and to determine the degree of their coherence. In a sample of 17 EMU member countries and time periods pre-crisis and crisis period, correlation and regression analysis indicate a causal connection between these indicators and their impact on the solvency of the country. Results show that in the event of a crisis in public debt due to the increase in interest rates on long-term government bonds, significantly increasing the share of public debt in GDP, which increases the risk of non-payment of debt and consequent insolvency of member states. Fiscal aspect of integration of BiH observed through the prism of fiscal criteria of the EU show a minimum deviation from the reference value, however, given that the movement of the public debt servicing is directly dependent on the degree of increase/decrease of GDP, exports and disposable income to service the debt, decisions on further borrowing must be associated with manufacturing projects or production projects that will contribute to further economic growth and competitiveness.

scholarly journals EFFECTS OF CONCESSIONAL DEBT ON ECONOMIC DEVELOPMENT: A MULTILATERAL AND BILATERAL PERSPECTIVE ON THE WEST AFRICAN MONETARY ZONE

2021 ◽  
Vol 5 (2) ◽  
Author(s):  
Ifeoma C. Nwakoby ◽  
Hillary Chijindu Ezeaku
Keyword(s):  
Economic Development ◽  
Random Effect ◽  
Panel Cointegration ◽  
Developed Countries ◽  
West African ◽  
Standard Of Living ◽  
Less Developed Countries ◽  
The West ◽  
Long Run ◽  
The World

Studies on the contribution of concessional debt to economic development are sketchy. The paucity of empirical studies on this subject is even more glaring in the context of the English-speaking West African countries. Bilateral and multilateral aid donors have intensified the flow of official assistance to the developing countries of the world with the aim to bridge the developmental gap between the less developed countries and the industrialized countries of the world. The question that often arises is whether such aids have yielded the desired results among the recipient countries. Against this backdrop, we examined the effect of concessional debt on the economic development in the West African Monetary Zone (WAMZ) using cross-sectional data from 1975-2014. The panel cointegration and panel unit root tests were employed to test for long-run relationship and stationarity of the series respectively. Our model was analysed with both fixed and random effect panel regression while the Hausman test be used to determine the best and appropriate choice between the two. Our findings reveal that multilateral and bilateral concessional debts have significant positive effect on standard of living in the West African Monetary Zone. The panel cointegration test also indicates that there is no long-run relationship between concessional debt and per capita income. We conclude that inflow of concessional aid from multilateral and bilateral donors has had remarkable influence on the standard of living in the region. We recommend that concessional aid to the less developed countries be intensified. However, recipient countries should have a credible external borrowing guideline scribed in their legislation to check against excessive borrowing and also ensure that aid received is used for the intended (developmental) purposes. External institutions and aid agencies should also be involved in the entire aid administration with aim of ensuring that aid is extended based on need, not political ties. JEL: A10; B20; C01 <p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0781/a.php" alt="Hit counter" /></p>

scholarly journals Winners and Losers in the World Sugar Market due to Trade Liberalisation in the EU Sugar Sector

2006 ◽  
Author(s):  
Ellen Huan-Niemi ◽  
Leena Kerkelä
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Developed Countries ◽  
Trade Policies ◽  
Preferential Treatment ◽  
Tariff Rate Quotas ◽  
The Poor ◽  
The World ◽  
Sugar Market ◽  
The Eu

The ongoing trade negotiations, unilateral trade concessions and obligations under the World Trade Organization (WTO) are pushing the EU sugar regime to undertake reforms. These reforms will alter the positions of developing countries in the global sugar markets. Gradual changes within the tariff rate quotas in the EU sugar regime would have a very marginal impact on the flow of sugar exports to the EU and world sugar markets as well. The simulation results showed that the scheduled changes in tariff rate quotas and transition period are stalling the impacts of tariff liberalisation granted by the Everything But Arms (EBA) concession. Small concessions will not threaten the EU internal market, but total liberalisation of sugar imports from the least developed countries (LDCs) will be a major threat to the EU sugar regime. Conversely, the EU would gain from the liberalisation scenarios in welfare terms due to cheaper imports of sugar. The current regime limits sugar imports from all developing countries or some efficient producers, if the cost data is a right estimate of the potential supply response from developing countries. The supply responses, which strongly affect the outcomes, are dependent on both the nature of substitution for sugar as well as on the efficiency of sugar production in different countries. The LDCs would be the major winners under the EBA concession supported by the unchanged EU sugar regime, but if the current regime is entirely liberalised, much of the gains are diluted due to the deterioration in the terms of trade and a few efficient sugar producers would be the winners. The multi-region and multi-sector general equilibrium framework (GTAP model) is used for this analysis.The full liberalisation of the EU sugar regime and the abolition of the preferential treatment in the EU sugar regime would change the position of the countries as winners or losers. The assumptions on the production and export possibilities of the sugar producing countries and the homogenous nature of sugar would create more losers than winners. For some of the losers, the loss of sugar exports could seriously damage their fragile economy. Therefore, the abolition or loss of preferential treatment is an important issue and hotly debated around the world.Trade preferences have the potential of helping developing countries to promote self-sustained economic development and can substitute transfers in the form of direct financial assistance from developed countries to poor developing countries. The EU has maintained this development perspective by granting preferential access to the highly protected and subsidised EU sugar market with prices significantly above the world market prices. In the short run, any sudden changes in the EU regime and trade policies may cause severe problems for the poor currently employed in the export-oriented sugar industry of the developing countries. Compensation is needed for these affected people because of the adjustment costs due to the changes in trade policies. In the long run, the sustainable export performance and economic development based on the comparative advantage of the developing countries should be the final objective. Though, the livelihood of the poor must be protected against sudden changes in trade policies in the effort to achieve the Millennium Development Goals.

scholarly journals FUNDOS DE PENSÃO, CAPITAL ESTATAL E NEODESENVOLVIMENTISMO

2014 ◽  
Vol 18 ◽  
pp. 155
Author(s):  
José Menezes Gomes
Keyword(s):  
Economic Development ◽  
Public Debt ◽  
External Debt ◽  
Developed Countries ◽  
Pension Funds ◽  
The State ◽  
The Public ◽  
Indirect Taxes ◽  
The Usa

O artigo analisa os limites da concepção de desenvolvimento econômico decorrente da mudança do cenário internacional, desde 2003, com a alteração do fluxo internacional de capitais para os países subdesenvolvidos, acompanhado da expansão chinesa e valorização das commodities. Destaca o papel atribuído aos fundos de pensãopelo governo Lula da Silva para justificar a Contrarreforma da Previdência. Aborda o papel do BNDES e o subsídio ao grande capital. Demarca a queda da taxa básica nos EUA e seus impactos sobre a economia brasileira. Argumenta que o pagamento de juros e amortização da dívida pública se converteu no mecanismo através do qual o Estado retira recursosdos trabalhadores, através de impostos diretos e indiretos e os remete aos banqueiros e fundos de pensão. Enfatiza a generalização do neoliberalismo, visando resolver a crise capitalista através da renegociação da dívida externa, das aberturas comercial e financeira, das privatizações.Palavras-chave: Fluxo internacional de capitais, fundos de pensão, neoliberalismo, dívida pública.PENSION FUNDS, STATE-OWNED CAPITAL AND NEO-DEVELOPMENTISMAbstract: The article analyzes the limits of conception of economic development arising from the change of the international scenery, since 2003, with the alteration of the international flux of capitals to the sub-developed countries, accompanied of chinese expansion and commodities’ appreciation. It highlights the assigned role to the pension funds by Lula da Silva’s government to justify the counter-reform of the Provident Funds. It approaches the role of BNDES and the subsidy tothe grand capital. Demarcates the fall of the basic tax in the USA and its impacts on the Brazilian economy. Argues that the payment of taxes and the amortization of the public debt was converted in the mechanism through which the State withdraw resources from workers, through the direct and indirect taxes and refer those to the bankers and pension funds.Emphasizes the generalization of neoliberalism, seeking to resolve the capitalist crisis through the renegotiation of external debt, of the commercial and financial openings, and of privatizations.Keywords: International flux of capitals, pension funds, neoliberalism, public debt.

scholarly journals The Impact of Public Expenditure and Public Debt on Taxes: A Case Study of Jordan

2017 ◽  
Vol 6 (3) ◽  
pp. 10
Author(s):  
Ateyah Alawneh
Keyword(s):  
Public Debt ◽  
Positive Impact ◽  
Capital Expenditure ◽  
Linear Regression Method ◽  
The Public ◽  
Finance Capital ◽  
Internal Sources ◽  
The Government ◽  
The Impact

The study aimed to estimate the impact of capital expenditure, current expenditure and external and internal public debt on taxes in Jordan during the period 2001–2014. It adopted the multiple linear regression method by E-views program to study the impact of the independent variables (represented by capital expenditure, current expenditure, external and internal public debit) on the dependent variable (taxes). The statistical analysis showed a statistically significant, positive impact of both the capital expenditure and the current expenditure on taxes. The study also found a statistically significant, positive relationship between external and internal public debt on taxes in Jordan. The study presented a number of recommendations, most importantly for the public sector, taking into account the capital expenditure, the current expenditure and the external and internal public debt, which directly affect the tax increases in Jordan. There is a need to use non-traditional alternatives to finance capital expenditures instead of external public debt and internal sources, such as Sukuk Murabaha Islamic participation, to finance capital expenditure for the Government to build schools, hospitals and other government services. The Government should take into account the current expenditure of tax revenues, while capital expenditure should be covered by non-traditional means.

Sign in / Sign up

Export Citation Format

Share Document