AN ANALYTICAL STUDY ON PUBLIC DEBT AND ITS IMPACT ON NEPALESE ECONOMY

This study aims to find out the pattern and composition of public debt, and its impact on Gross Domestic Product (GDP) growth of Nepal. This study is based on secondary sources of infor-mation and the data are collected from relevant archives. The collected data and information have been analyzed through descriptive as well as analytical research methods. Public borrowing has become a common practice for developing and even developed countries in order to meet the inter-nal resource crisis and development budget. Nepal had formally started borrowing from 1960s and government owed more from the external sources in the beginning, but the foreign assistance has been decreasing in recent periods. Public debt can not be so fruitful in terms of GDP growth, and this statement is supported by the fact that the average growth rate remains almost constant at 4.5 percent, but the average inflation rate is at 5.9 percent in the 40 years of study period. The amount of public debt has been increasing due to poor mobilization of internal resources and growth in unproductive recurrent expenses, especially due to the implementation of federalism of Nepal. The interest and principal of public debt especially in context of foreign debt, has been grow-ing year over year, so the burden of public debt has also been growing. In Nepalese context, the public debt to GDP ratio is 30.02 percent, so judging from that, public debt does not seem to be a serious problem as of now, because the alarming threshold specified by World Bank is at 77 per-cent. But, the growing trend of public borrowing may be a challenging problem for any nation in a long run, so the heavy dependence of national economy upon public debt, especially on foreign loan, ought to be minimized.

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

Economics Research International ◽

10.1155/2016/1957017 ◽

2016 ◽

Vol 2016 ◽

pp. 1-7 ◽

Cited By ~ 1

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.

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Relative Impact of Domestic and Foreign Public Debt on Economic Growth in South Africa

Journal of Applied Social Science ◽

10.1177/1936724420980414 ◽

2020 ◽

pp. 193672442098041

Author(s):

Talknice Saungweme ◽

Nicholas M. Odhiambo

Keyword(s):

Economic Growth ◽

South Africa ◽

Public Debt ◽

Foreign Debt ◽

Negative Relationship ◽

Relative Impact ◽

Long Run ◽

Short Run ◽

The Government ◽

The Impact

This paper investigates the debt-growth nexus by testing both the impact of aggregate public debt on economic growth and the relative impact of domestic and foreign public debt on economic growth using South Africa as the case study—from 1970 to 2017. Based on the autoregressive distributed lag (ARDL) technique, the findings reveal that the impact of aggregated public debt on economic growth in South Africa is statistically significant and negative, both in the short run and in the long run. The results further reveal that domestic public debt and economic growth have a statistically significant and positive relationship in the short run only. Furthermore, foreign public debt has a statistically significant and negative relationship with economic growth but only in the long run. Therefore, the study recommends the government to manage effectively its debt and to finance long-term high-returning productive investments that should translate into economic growth. Finally, the study cautions the country against growing public debt, predominantly foreign debt, to finance its increasing recurrent expenditure needs.

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IMPACT OF THE GOVERNMENT DEBT ON ECONOMIC DEVELOPMENT OF COUNTRY

WORLD OF FINANCE ◽

10.35774/sf2019.02.023 ◽

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.

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The Impact of E-Commerce on International Trade: Case of Turkey

International Journal of Contemporary Research and Review ◽

10.15520/ijcrr.v10i01.641 ◽

2019 ◽

Vol 10 (01) ◽

pp. 21190-21209

Author(s):

Ameer Mahdi Nassrullah Mzwri ◽

Zelha Altinkaya

Keyword(s):

International Trade ◽

Electronic Commerce ◽

Developed Countries ◽

Geographical Distance ◽

Doing Business ◽

Long Run ◽

Short Run ◽

In The Beginning ◽

Corporate Profits ◽

The Impact

The purpose of the present paper is to investigate the impact of electronic commerce on international trade with the case studying of Turkey. E-commerce offers economy-wide benefits to all countries. The benefits are probably to be concentrated in developed countries in the short run, but developing countries will have more to benefit in the long run. Applying electronic commerce in both own and foreign country will affect corporate profits badly in the beginning, but after a certain step of progress, it will promote the rapid growth of corporate profits. The theories covered in this paper are simply those theories which have helped business, governments, and economics to better understand international trade and also to better understand how to manage, regulate, and promote international trade. The capacity of international trade will rise via e-commerce. New opportunities for international trade have created throughout internet. The way of communicating or doing business and trade between companies and individuals has changed as the geographical distance decreased between buyers and sellers.

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Is the Greek debt sustainable? Analyzing three different scenarios for the forthcoming period 2018–2022

Journal for Markets and Ethics ◽

10.2478/jome-2018-0036 ◽

2018 ◽

Vol 6 (2) ◽

pp. 171-182

Author(s):

Emmanouil M.L. Economou ◽

Nicholas Kyriazis

Keyword(s):

Gross Domestic Product ◽

Conceptual Framework ◽

Growth Rates ◽

Public Debt ◽

Gdp Growth ◽

Trade Off ◽

The Third ◽

Long Run ◽

Policy Measures ◽

Official Data

Abstract In this paper, we attempt to estimate the development of the Greek public debt for the period 2018–2022. In order to achieve this, we analyze three different fiscal scenarios that are based on the official data available, together with our estimations that are based on a specific conceptual framework that we develop. The three scenarios are based on a different mixture of Gross domestic product (GDP) growth rates and budgetary surpluses of GDP. The analysis concludes that the numerical outcome is almost the same in all three case scenarios. However, the third scenario is the best since it leads to higher growth, GDP, and less austerity measures, and thus making public debt sustainable in the long run. The third scenario also provides the best combination of the trade-off between austerity and growth. We conclude by discussing some policy measures.

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Testing Instability in Growth Patterns in the Course of Transition: Evidence for Balkan Countries

Economic Themes ◽

10.1515/ethemes-2017-0025 ◽

2017 ◽

Vol 55 (4) ◽

pp. 451-463

Author(s):

Nataša Trajkova-Najdovska ◽

Snežana Radukić

Keyword(s):

Regression Analysis ◽

Linear Regression ◽

Linear Regression Analysis ◽

Developed Countries ◽

Growth Patterns ◽

Data Series ◽

Gdp Growth ◽

Simple Linear Regression ◽

Average Growth ◽

Simple Linear Regression Analysis

AbstractStylised facts of GDP growth patterns of developing (or transition) countries reveal huge difference to the GDP pattern observed in developed countries. Namely, they are characterised by a specific characteristic - instability, much higher and different from the ones observed in developed countries. This paper brings forward the assessment of the instability of growth, which is observed and tested in the case of several Balkan economies. In the course of transition, they experienced sudden turns from positive to negative average growth rates (or vice versa) caused by many structural, economic, political and social changes. Hence, the main purpose of the paper is to review the very recent literature on instability in growth and to empirically analyse it in the case of Balkan group of transition economies, performed by use of the simple linear regression analysis on the GDP growth data series. Main goal is to determine whether GDP growth patterns in the course of transition were characterised by instability and breaks. The results suggest that the growth process in Balkan economies cannot be described simply by a single rising trend, since the simple linear regression analysis shows very poor statistical fit. In general, the assessment guides towards an in-depth study of the instability of growth in the course of transition with a novel growth concept that will allow for shifts or breaks in trend, accompanied by a non-linear modelling approach that will allow the parameters to adjust to reflect structural changes in the course of transition.

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Infrastructure mortgage in Russia: Opportunities and prospects

Voprosy Ekonomiki ◽

10.32609/0042-8736-2019-2-114-133 ◽

2019 ◽

pp. 114-133

Author(s):

G. I. Idrisov ◽

Y. Yu. Ponomarev

Keyword(s):

Federal Government ◽

Public Debt ◽

Budget Deficit ◽

Expert Assessment ◽

Inflation Expectations ◽

Direct Impact ◽

Long Run ◽

Gdp Growth Rate ◽

Negative Effect

The article shows that depending on the goals pursued by the federal government and the available interbudgetary tools a different design of infrastructure mortgage is preferable. Three variants of such mortgage in Russia are proposed, each of which is better suited for certain types of projects and uses different forms of subsidies. According to our expert assessment the active use of infrastructure mortgage in Russia can increase the average annual GDP growth rate by 0.5 p. p. on the horizon of 5—7 years. In the long run the growth of infrastructure financing through the use of infrastructure mortgage could increase long-term economic growth by 0.9 p. p., which in 20—30 years can add 20—30% of GDP to the economy. However, the change in the structure of budget expenditures in the absence of an increase in the budget deficit and public debt will cause no direct impact on monetary policy. The increase in the deficit and the build-up of public debt will have a negative effect on inflation expectations, which will require monetary tightening for a longer time to stabilize them.

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PENGARUH INFRASTRUKTUR SECARA SPASIAL TERHADAP KONVERGENSI PERTUMBUHAN EKONOMI DI INDONESIA

INFO ARTHA ◽

10.31092/jia.v1i1.67 ◽

2017 ◽

Vol 1 ◽

pp. 17-28

Author(s):

Anisa Fahmi

Keyword(s):

Economic Growth ◽

Regional Economics ◽

Developed Countries ◽

Road Infrastructure ◽

Long Run ◽

Catch Up ◽

The Developed Countries ◽

Positive Effect ◽

Neoclassical Growth Theory

Motivated by inter-regional disparities condition that occurs persistently, this study examines the Indonesian economy in the long run in order to know whether it tends to converge or diverge. This convergence is based on the Solow Neoclassical growth theory assuming the existence of diminishing returns to capital so that when the developed countries reach steady state conditions, developing countries will continuously grow up to 'catch-up' with developed countries. Based on regional economics perspective, each region can not be treated as a stand-alone unit,therefore, this study also focuses on the influence of spatial dependency and infrastructure. Economical and political situations of a region will influence policy in that region which will also have an impact to the neighboring regions. The estimation results of spatial cross-regressive model using fixed effect method consistently confirmed that the Indonesian economy in the long term will likely converge with a speed of 8.08 percent per year. Other findings are road infrastructure has a positive effect on economic growth and investment and road infrastructure are spatially showed a positive effect on economic growth. In other words, the investment and infrastructure of a region does not only affect the economic growth of that region but also to the economy of the contiguous regions.

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