Threshold Effects of Sovereign Debt : Evidence From the Caribbean /

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 reache...

Szczegółowa specyfikacja

Opis bibliograficzny
1. autor: Drakes, Lisa
Kolejni autorzy: Craigwell, Roland, Greenidge, Kevin, Thomas, Chrystol
Format: Czasopismo
Język:English
Wydane: Washington, D.C. : International Monetary Fund, 2012.
Seria:IMF Working Papers; Working Paper ; No. 2012/157
Dostęp online:Full text available on IMF
Opis
Streszczenie: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.
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Opis fizyczny:1 online resource (23 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Ograniczenie dostępu:Electronic access restricted to authorized BRAC University faculty, staff and students