Threshold effects of sovereign debt : evidence from the Caribbean

Kevin Greenidge, Roland Craigwell, Chrystol Thomas and Lisa Drakes

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 impact

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Year of publication:	2012
Authors:	Greenidge, Kevin C. D. ; Craigwell, Roland C. ; Thomas, Chrystol ; Drakes, Lisa
Publisher:	Washington, DC : Internat. Monetary Fund
Subject:	Öffentliche Schulden \| Public debt \| Wirtschaftswachstum \| Economic growth \| CARICOM-Staaten \| CARICOM countries

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Extent:	Online-Ressource (PDF-Datei: 22 S., 1,200 KB) graph. Darst.
Series:	IMF working papers. - Washington, DC : IMF, ZDB-ID 2108494-4. - Vol. 12/157 IMF Working Papers
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	Includes bibliographical references Systemvoraussetzungen: Acrobat Reader 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 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 Electronic reproduction; Available via World Wide Web
ISBN:	978-1-4755-0450-7 ; 978-1-4755-1429-2 ; 978-1-4755-0450-7
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10009618534