What happens to the relationship between public debt and economic growth in European countries?

Abstract

The importance of public debt level is mainly related with its impact on economic growth. We analyze the relationship between public debt and economic growth in the core and periphery European countries. We find that higher levels of debt-to-GDP ratio have a negative impact on economic growth in all countries, with Belgium and Ireland being the most affected economies in each type of countries. Moreover, we obtain that economic growth reduces debt-to-GDP ratio and, consequently, economic growth is essential to reduce public debt and improves the general economic situation.

The Impact of Trade Openness on Economic Growth in Somalia

“…It is interpreted as a 1% increase in the labour force leading economic growth to increase by 0.11% in the long run. This finding is in line with [22][23][24]. Nevertheless, this finding is contradictory to the previous research finding of [25], Who reported that the labour force has a negative impact on economic growth in Ethiopia.…”

How does population growth affect economic growth and vice versa? An empirical analysis

“…(2013), Furuoka (2013), Musa (2015) and Sebikabu et al. (2020).y ⇒ p , unidirectional causality, economic growth stimulates population to grow: Nakibulla (1998).p ⇔ y, bidirectional causality, population growth stimulates and is stimulated by economic growth: Garza-Rodriguez et al. (2016), Alvarez-Diaz et al.…”

“…p ⇔ y, bidirectional causality, population growth stimulates and is stimulated by economic growth: Garza-Rodriguez et al. (2016), Alvarez-Diaz et al.…”