Determinants of substantial public debt reductions in Central and Eastern European Countries

Semik, Sofia; Zimmermann, Lilli

doi:10.1007/s10663-021-09529-2

Cited by 12 publications

(4 citation statements)

References 25 publications

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“…The determinants of public debt reduction in Central and Eastern European countries were assessed by S. Semik & L. Zimmermann (2022). The results of the study showed that in this context the main factors are the importance of fiscal policy framework, economic growth, and the interest burden of the government to achieve a significant debt reduction.…”

Section: Discussionmentioning

confidence: 99%

Global experience in public debt reduction (on example of Sweden, Switzerland, and Iceland)

Isaev,

Shatsheeva,

Amanturova

et al. 2024

Economics of Development

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Public debt reduction is one of the main objectives of budget policy formation in the current crisis conditions. In this regard, the study of the experience of different countries in this area is relevant. Therefore, the aim of the study was to provide recommendations for reducing the debt burden in the Kyrgyz Republic, based on the experience of other countries. The main methods used in the research were historical, comparison and generalisation. The study analysed the factors affecting the reduction of public debt in the Kyrgyz Republic. It was concluded that the components that can help affect the debt burden in the country are inflation, economic development, and a targeted policy of the state to pay debts. It was shown that in the current realities, countries that are successful in this direction most often use the latter approach. In addition, the situation in Sweden, Switzerland and Iceland was analysed directly and the main recommendations were given as to how the Kyrgyz Republic can improve its current situation in terms of debt reduction. These recommendations focused primarily on fighting corruption and improving the situation in the context of institutional development, as well as reducing expenditures to achieve a budget surplus. It was recommended not to increase taxes directly to increase state revenues, but to increase the efficiency of their collection. The data obtained from the results of the study can be used to formulate public policy in the area of public debt and budget management both in the Kyrgyz Republic and in other countries

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Section: Discussionmentioning

confidence: 99%

Global experience in public debt reduction (on example of Sweden, Switzerland, and Iceland)

Isaev,

Shatsheeva,

Amanturova

et al. 2024

Economics of Development

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“…Although the financing of expenditures is one of the main causes of indebtedness, there are also political reasons, such as government ideology, political strength, having a majority, and the possibility that indebtedness is influenced by a strategy related to the electoral cycle, that is, the potential existence of a pattern of political indebtedness that is linked to the timing of elections. According to this theory, politicians increase spending and maintain or reduce taxes in the run-up to elections in order to please citizens and stay in power (Brender and Drazen 2005; Shi and Svensson 2006; Foremny and Riedel 2014).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Analyzing the Importance of the Determinants of Public Debt and Its Policy Implications: A Survey of Literature

Cifuentes-Faura,

Simionescu

2023

Public Finance Review

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Public debt is a key issue for government institutions, both because of the amount of its revenues, which partly compensate for the possible shortfall in tax collection, and because it is an essential instrument of fiscal policy for the government. This paper reviews the literature on the determinants of public debt in order to identify the explanatory variables of public debt according to the main theoretical and empirical studies. This work will support policy makers who have to obtain financial resources to cover essential and very necessary expenditures nowadays, such as health, education, or infrastructure investment, by controlling debt levels and fiscal pressure. The main policy implication we can derive from these results is that governments should use some of these instruments to reduce general government debt.

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“…Equation (2) states that economic growth (), population growth (), government expenditure (), gross fixed capital formation (), gross domestic savings (SAVE), trade openness (), and inflation ( ) can potentially affect public debt (Dawood et al, 2021;Forslund et al, 2011). Favorable economic growth rates increase the probability of a substantial reduction in government debt (Semik and Zimmermann, 2022). In the development literature, population changes affect the global economy; particularly, population aging will likely push public debt (Mason and Lee, 2022).…”

Section: A Model Specificationmentioning

confidence: 99%

An Alternative Approach to Assess the Impacts of Countercyclical Fiscal Policy in Developing Countries

Nguyen,

2023

Journal of Economic Integration

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In the current literature, theoretical, and empirical studies present varying implications regarding the effectiveness of countercyclical fiscal policy in stabilizing the economy. While most studies suggest that countercyclical fiscal policy stimulates or inhibits economic growth, others document insignificant impact. However, these existing studies solely analyze the impulse of fiscal policy to the economy without distinguishing whether the impulse factor originates from within or outside the economy. Therefore, we aim to explore the effectiveness of countercyclical fiscal policy within an alternative framework that discerns the origin of the impulse factor and revisits the impacts of countercyclical policy in developing countries. Our theoretical framework argues that the countercyclical fiscal policy only makes sense if it is conducted with external debt or other external instruments. Employing the dataset that covers 201 countries over the 1990-2020 periods, we document evidence for the use of countercyclical fiscal policy in developing countries.

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Determinants of substantial public debt reductions in Central and Eastern European Countries

Cited by 12 publications

References 25 publications

Global experience in public debt reduction (on example of Sweden, Switzerland, and Iceland)

Global experience in public debt reduction (on example of Sweden, Switzerland, and Iceland)

Analyzing the Importance of the Determinants of Public Debt and Its Policy Implications: A Survey of Literature

An Alternative Approach to Assess the Impacts of Countercyclical Fiscal Policy in Developing Countries

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