Growth-maximizing public debt in turkey: An empirical investigation
Yükleniyor...
Tarih
2020
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Walter de Gruyter GmbH
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
The aim of the paper is to empirically estimate the growth-maximizing debt-to-GDP ratio in the case of Turkey. To calculate the growth-maximizing debt-to-GDP ratio FMOLS, DOLS, and CCR estimators are used for the period from 1960–2013. According to the empirical findings the growth-maximizing debt-to-GDP ratio varies between 34.3% and 38.7%. Based on a comparison of these ratios to current data (29.1% for 2018), Turkey has the capacity for additional borrowing to achieve a growth-maximizing debt-to-GDP ratio. If this additional borrowing capacity is used for public investment with a return greater than the interest cost of the additional debt economic growth will be maximized and public debt sustainability supported.
Açıklama
Anahtar Kelimeler
Economic Growth, Fiscal Rule, Public Debt, Turkish Economy
Kaynak
Economics and Business Review
WoS Q Değeri
N/A
Scopus Q Değeri
Q3
Cilt
6
Sayı
3
