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Dynamics of Public Debt, Political Institutions, and Economic Growth: A Quantile Analysis in Developing Economies (1996-2021).
- Source :
- Review of Education, Administration & Law (REAL); 2023, Vol. 6 Issue 2, p469-480, 12p
- Publication Year :
- 2023
-
Abstract
- This study investigates the interconnected impacts of public debt, political institutional performance, and economic growth in developing nations from 1996 to 2021. By employing the robust quantile via moments methodology, this study effectively addresses the complexities of endogeneity, heterogeneity, and nonlinearity within variables. The outcomes yield significant insights, revealing a consistent negative relationship between public debt and growth in alignment with the "debt overhang" theory. Furthermore, this study identifies a positive link between institutional political performance and political growth. Particularly noteworthy is the finding that the interaction between debt and institutional strength can mitigate the adverse consequences of debt, underscoring the pivotal role of strong institutions. These discoveries underscore the paramount importance of strategic fiscal management and resilient political institutions in nurturing sustainable economic growth. As such, this study holds the potential to guide policy frameworks that amplify the trajectory of developing economies towards enduring economic progress. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 27081788
- Volume :
- 6
- Issue :
- 2
- Database :
- Complementary Index
- Journal :
- Review of Education, Administration & Law (REAL)
- Publication Type :
- Academic Journal
- Accession number :
- 173906909
- Full Text :
- https://doi.org/10.47067/real.v6i2.346