Public Debt, Corruption and Sustainable Economic Growth

Kim, Eunji; Ha, Yoonhee P.; Kim, Sang‐Heon

doi:10.3390/su9030433

Cited by 66 publications

(96 citation statements)

References 107 publications

(110 reference statements)

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“…The positive effect occurs when institutional quality is high enough to ensure well-functioning government, which effectively distributes and allocates the borrowed funds to high value-added sectors. This conclusion to some extent is supported by Megersa and Cassimon (2015), Masuch et al (2016), Kim et al (2017) who include institutional quality and debt interaction variable into growth regression and find evidence that the negative effect of debt on growth is at least lower (if not turns to positive) when coupled with good policies and institutions. Megersa and Cassimon (2015) findings for 57 developing countries suggest that debt is detrimental for growth, however, harm is reduced while controlling the quality of public sector management.…”

Section: The Role Of Institutional Quality In Debt-growth Relationshipmentioning

confidence: 88%

Growth Effect of Public Debt: The Role of Government Effectiveness and Trade Balance

Butkus

Šeputienė

2018

Economies

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A growing number of recent works support the idea of debt threshold level (turning point), above which debt starts reducing economic growth. However, estimated threshold varies sharply across studies and gives a little insight into what the optimal level of debt is. The point is that there is no single turning point that could be applied to all countries and a proper investigation is needed on factors, which shape the debt impact on growth. This study aims to investigate whether debt threshold level depends on government effectiveness (one of the aspects of countries’ institutional quality) and trade balance. Our SYS-GMM estimates (and alternatively OLS and LSDV for robustness check) are based on the unbalanced panel of 152 countries over the period of 1996–2016 and on two strategies: (i) splitting of sample into subsamples according to trade balance and government effectiveness and (ii) including debt and government effectiveness, debt and trade deficit interactions. The obtained results are in line with those which confirm inverted U-shaped debt-growth relationship with clear debt turning point dependence on government effectiveness. However, effective governance is not enough to avoid the negative debt effect. Trade balance seems to be more crucial factor than institutional quality, on which threshold level depends.

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Section: The Role Of Institutional Quality In Debt-growth Relationshipmentioning

confidence: 88%

Growth Effect of Public Debt: The Role of Government Effectiveness and Trade Balance

Butkus

Šeputienė

2018

Economies

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“…The state sector has always been an important element of many economies, including the most advanced ones [5]. Public debt has increased sharply since the 2008 financial crisis, especially in advanced countries [6]. According to the OECD, among the world's 2000 largest companies, 649 are located in Asia, of which about one third have at least 10% state ownership [7].…”

Section: Introductionmentioning

confidence: 99%

Is Narcissism Sustainable in CEO Leadership of State-Owned Enterprises?

Kim

2018

Sustainability

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The state sector has been an important part of many economies. This study measures the narcissism of the chief executive officers (CEOs) of state-owned enterprises (SOEs) unobtrusively, and examines the effect of narcissism on the performance and accounting earnings management of firms. This study shows that the narcissism of CEOs positively affects the performance of SOEs, and that the positive effect is a result of real management decisions rather than accounting earnings management. It also shows that CEO narcissism does not affect the earnings management of SOEs. However, this relation changes as the tenure of the CEO gets longer. As tenure gets longer, a CEO's narcissism negatively affects the performance of a SOE, and a CEO with high narcissism is likely to be involved in earnings management to make up for weak performance. This study suggests that narcissism is not a sustainable leadership style. It also suggests that the personal characteristics of executives in public corporations are important in determining the performance of firms. While a longer tenure ensures that a CEO will pursue his/her strategy steadily, the leadership of a narcissistic CEO becomes negative and ineffective as their tenure gets longer. Considering the importance of SOEs in the economy, this is an important policy implication, as the appointment of a CEO and length of tenure are likely to be determined by the government.

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“…Per capita income (Saha and Gounder, 2013;Wong, 1992), the share of importation of goods and services in GDP (Kim, 2017;Bai, 2014;Nauro Campos, 2012), economic openness (Bojnec Štefan, 2017), inflation (Wong, 1992) and tax are among all the variables which have been studied. In this study, we discus and evaluate the impact of per capita income, the size of government and inflation on fraud, and examine the combined effect of the economic variables on fraud.…”

Section: Economic Factorsmentioning

confidence: 99%

Combined Effect of Economic Variables on Fraud, a Survey of Developing Countries

Omidi

2017

Economics &Amp; Sociology

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ABSTRACT. Recently, many researchers have examined the factors affecting fraud and introduced the elements required for fraud to exist. In this paper, we define these variables in two broad groups of economic and noneconomic variables. We examine the combined effect of economic variables on fraud. We used 7 variables namely; fraud, the size of government, democracy, per capita income, inflation, the total value added of the industrial sector divided by GDP, and the total value added of the service sector divided by GDP. The predictive method used in this study is panel data. Our research findings show that democracy and GDP tend to have a reverse effect on fraud, whereas the size of the government and inflation are positively associated with fraud. Furthermore, we describe the association between industrial sector and fraud and also the service sector and fraud.

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Public Debt, Corruption and Sustainable Economic Growth

Cited by 66 publications

References 107 publications

Growth Effect of Public Debt: The Role of Government Effectiveness and Trade Balance

Growth Effect of Public Debt: The Role of Government Effectiveness and Trade Balance

Is Narcissism Sustainable in CEO Leadership of State-Owned Enterprises?

Combined Effect of Economic Variables on Fraud, a Survey of Developing Countries

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