Theoretical and Applied Economics
No. 1 / 2021 (626), Spring
Debt-financed public investment in developing countries: Does the efficiency of public investment matter?
Lincoln University, New Zealand
Abstract. Public investment is central to implementing the UN 2030 Agenda for Sustainable Development – but persistent levels of high public debt without sufficient debt-servicing capacity poses serious risks. This study examines whether government spending efficiency is associated with differential effects of public investment on debt-to-GDP ratio for a panel data consisting of 16 developing countries in Asia-Pacific region over the period 2007-2017. The empirical results indicate that public investment efficiency moderates debt-to-GDP ratio whereas public investment in the midst of public sector corruption accentuates debt-to-GDP ratio. The results have important policy implications.
Contents
How do immigration impact unemployment and economic prosperity? An extensive investigation from the OECD nations
Influences and spatial effects on subjective well-being
Pre- and post- analysis of Bank of Japan’s policy implementation of negative interest rates
Using of KPIs and Dashboard in the analysis of Nike company's performance management
Economic policy uncertainty and adaptability in international capital markets
Is the creation of major objectives in the European Union an objective that may constitute a challenge for the Member States of the European Union?
Romania’s coal-fired power plants efficiency and pollution in the context of the European green deal
Equilibrium in a Stackelberg duopoly
Energy and economic growth. An empirical analysis
Fiscal competition and public expenditure composition in the era of globalization: Panel data analysis
Empirics of technology and unemployment in advanced countries
Capital account liberalisation in India: Volatility of capital flows and selective policy issues
Health, health production and input financing: A theoretical note
The response of monetary policy to the COVID-19 pandemic in Turkey. The path of a credit-based economic recovery
The co-integration and causal relationship between saving and economic growth in India
Does exchange rate volatility affect financial depth? Evidence from BRICS countries
Debt-financed public investment in developing countries: Does the efficiency of public investment matter?
Dynamic connection between macroeconomic variables and sectoral stock returns: Evidence from India
A pragmatic evaluation of the interconnection between currency futures return volatility, open interest and volume
Fiscal policy and growth-inequality tradeoffs: Bayesian evidence from Cote d’Ivoire
My colleague is corrupt: Information disclosure to control corruption