UID:
edocfu_9958094784302883
Format:
1 online resource (25 p.)
ISBN:
1-4755-6677-8
,
1-4755-1429-8
Series Statement:
IMF working paper ; 12/157
Content:
This paper addresses the issue of threshold effects between public debt and economic growth in the Caribbean. The main finding is that there exists a threshold debt to gross domestic product (GDP) ratio of 55–56 percent. Moreover, the debt dynamics begin changing well before this threshold is reached. Specifically, at debt levels lower than 30 percent of GDP, increases in the debt-to-GDP ratio are associated with faster economic growth. However, as debt rises beyond 30 percent, the effects on economic growth diminishes rapidly and at debt levels reaching 55-56 percent of GDP, the growth impacts switch from positive to negative. Thus, beyond this threshold, debt becomes a drag on growth.
Note:
Description based upon print version of record.
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Cover; Contents; I. Introduction; II. The Historical Behavior of Public Debt; Tables; 1. Summary Statistics for Nominal Public Debt; Figures; 1. Nominal Public Debt Levels of Selected CARICOM States; 2. Summary Statistics for Real Public Debt; 2. Real Public Debt for Selected CARICOM States; 3. Summary Statistics for Public Debt to GDP Ratios of Selected CARICOM States; 3. Public Debt to GDP Ratios of Selected CARICOM States; 4. Summary Statistics for the Growth in the Public Debt to GDP Ratio; 4. Growth of the Public Debt to GDP Ratio; III. Literature Review; IV. Methodology and Data
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V. Results5. Threshold Debt Regression using the Modified Hansen Model; 6. Estimated Loss in Real GDP Growth (In percentage points); 5. Public Debt and Growth; 6. Investment and Growth; 7. Trade and Growth; 8. Government Spending and Growth; 9. Inflation and Growth; 10. Sum of Squared Residuals as a Function of Debt Threshold; VI. Conclusion; 11. Sum of Squared Residuals with Instruments; 12. Stylized Shape of the Threshold Effects of Public Debt on Growth; References
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English
Additional Edition:
ISBN 1-4755-0450-0
Additional Edition:
ISBN 1-4755-9498-4
Language:
English
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