Research on Reasonable Government Debt Scale from Angle of Economic Growth:Evidence from OECD
Jinli Liu
Abstract
Jinli Liu
Abstract
European debt crisis attracted the attention and discussion of the worldwide practice and academia about the topic of economic growth mechanism of government debt,the difference the effects of government domestic debt and external debt on economic growth,the turning point of debt overhang that is a threshold at which the marginal effect of government debt on growth turns negative less than thirty years after Latin- American debt crisis.Based on discussion about the debt crisis of developed countries,this thesis investigates the reasonable government debt scale from perspective of doing regression about government debt and economic growth using dynamic panel data of OECD countries from 2000- 2009. The conclusions of this paper are reference and accordance to domestic empirical study about government debt scale and local government debt crisis prevention,OECD country's government debt scale controlling.
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European debt crisis attracted the attention and discussion of the worldwide practice and academia about the topic of economic growth mechanism of government debt,the difference the effects of government domestic debt and external debt on economic growth,the turning point of debt overhang that is a threshold at which the marginal effect of government debt on growth turns negative less than thirty years after Latin- American debt crisis.Based on discussion about the debt crisis of developed countries,this thesis investigates the reasonable government debt scale from perspective of doing regression about government debt and economic growth using dynamic panel data of OECD countries from 2000- 2009. The conclusions of this paper are reference and accordance to domestic empirical study about government debt scale and local government debt crisis prevention,OECD country's government debt scale controlling.
Key concepts: Debt-to-GDP ratio, Internal debt, Debt levels and flows, Government debt, External debt, Debt crisis, Economics, Debt