Do Governments in Developing Countries Pursue Sustainable Debt Policies? Empirical Evidence for Selected Countries in Africa and Latin America.

In this paper we test for sustainability of public debt in selected low- and middle-income developing countries of Africa and Latin-America. We do this by analysing how the primary surplus to GDP reacts to variations in the debt to GDP ratio where we allow for a time-varying reaction coefficient. Mo...

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Publicado en:Journal of Development Studies Vol. 46; no. 4; pp. 745 - 771
Autores principales: Fincke, Bettina, Greiner, Alfred
Formato: Artículo
Publicado: Taylor & Francis Ltd Apr2010
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Do Governments in Developing Countries Pursue Sustainable Debt Policies? Empirical Evidence for Selected Countries in Africa and Latin America.
      aug:
        au:
          Fincke, Bettina
          Greiner, Alfred
        affil: Department of Business Administration and Economics, Bielefeld University, Bielefeld, Germany
      su:
        Public debts
        Economic policy
        Gross domestic product
        Budget deficits
        Africa
        Latin America
      sug:
        subj:
          Africa
          Latin America
          Public debts
          Economic policy
          Gross domestic product
          Budget deficits
      ab: In this paper we test for sustainability of public debt in selected low- and middle-income developing countries of Africa and Latin-America. We do this by analysing how the primary surplus to GDP reacts to variations in the debt to GDP ratio where we allow for a time-varying reaction coefficient. Moreover, we test for stationarity of the overall budget deficit of the selected countries. The results show that, despite rising debt ratios, there is empirical evidence for some of the countries that public debt is sustainable, independent of whether they belong to the low-income or middle-income group of countries.
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    language: English
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