Growth-maximizing public debt in turkey: An empirical investigation

Buluş, Gökay Canberk

Growth-maximizing public debt in turkey: An empirical investigation

dc.contributor.author	Buluş, Gökay Canberk
dc.date.accessioned	2021-06-07T10:06:54Z
dc.date.available	2021-06-07T10:06:54Z
dc.date.issued	2020
dc.department	İktisadi ve İdari Bilimler Fakültesi
dc.description.abstract	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.
dc.identifier.doi	10.18559/ebr.2020.3.4
dc.identifier.endpage	87	en_US
dc.identifier.issue	3	en_US
dc.identifier.scopusquality	Q3
dc.identifier.startpage	68	en_US
dc.identifier.uri	https:/dx.doi.org/10.18559/ebr.2020.3.4
dc.identifier.uri	https://hdl.handle.net/20.500.12451/8074
dc.identifier.volume	6	en_US
dc.identifier.wosquality	N/A
dc.indekslendigikaynak	Web of Science
dc.indekslendigikaynak	Scopus
dc.language.iso	en
dc.publisher	Walter de Gruyter GmbH
dc.relation.ispartof	Economics and Business Review
dc.relation.publicationcategory	Makale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanı
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	Economic Growth
dc.subject	Fiscal Rule
dc.subject	Public Debt
dc.subject	Turkish Economy
dc.title	Growth-maximizing public debt in turkey: An empirical investigation
dc.type	Article