Public debt and economic growth in Latin America: A recap

In this paper, we examine the effect of public debt on Gross Domestic Product (GDP) in 15 Latin American economies for fifty years. The short-run impact of debt on GDP growth is positive, but it is closer to zero beyond public debt-to-GDP ratios between 64 and 71% (i.e. up to this threshold, additio...

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Detalles Bibliográficos
Autores principales: Jacobo, Alejandro D., Jalile, Ileana R.
Formato: Artículo revista
Lenguaje:Inglés
Publicado: Facultad de Ciencias Económicas - Universidad Nacional de Córdoba 2021
Materias:
H63
O40
Acceso en línea:https://revistas.unc.edu.ar/index.php/DTI/article/view/34305
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Sumario:In this paper, we examine the effect of public debt on Gross Domestic Product (GDP) in 15 Latin American economies for fifty years. The short-run impact of debt on GDP growth is positive, but it is closer to zero beyond public debt-to-GDP ratios between 64 and 71% (i.e. up to this threshold, additional debt has a stimulating impact on growth). In the long-run, the threshold is between 95% and 97%.