Non-linear Impacts of Public Debt on Growth, Investment and Credit: A Dynamic Panel Threshold Approach

Turan, Taner; İyidoğan, Pelin Varol

doi:10.18267/j.pep.825

Cited by 3 publications

References 76 publications

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The causal relationship between public debt and economic growth in G7 countries: new evidence from time and frequency domain approaches

Bozatli,

Serin,

Demir

2024

Econ Change Restruct

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Investigators of the public debt-economic growth nexus have yet to fully address the crucial issue of determining the direction of causality. There is an implicit assumption—or perception—that the causal relationship is mostly from public debt to economic growth. Beyond this, causal relationships may vary according to the presence of structural breaks as well as different frequency characteristics. The focus of this study is to address these issues. In this context, we comparatively investigate how structural changes and frequency characteristics affect the public debt-economic growth nexus using historical data covering the period 1870–2020 for G7 countries. Methodologically, we use Fourier Toda-Yamamoto and frequency-domain causality techniques from time and frequency-based approaches, respectively. Consistent with our expectations, we show that in the link between public debt and economic growth, they differ from or in some cases confirm each other based on the time and frequency-domain approaches. According to both approaches, in Italy and Japan, the feedback effect is valid, implying a mutual interaction between public debt and economic growth. Also, we find that this relationship is permanent. Similarly, we conclude that there is no causal relationship for France according to both approaches. For the remaining countries, however, we provide diverse evidence on both the direction of causality and the temporary/permanent nature of the causal relationship. The results on temporary or permanent causality at different frequencies offer policymakers and researchers detailed insights into an obscure aspect of the existing literature.

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The causal relationship between public debt and economic growth in G7 countries: new evidence from time and frequency domain approaches

Bozatli,

Serin,

Demir

2024

Econ Change Restruct

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The effect of housing prices on tourism employment: Evidence from China

Zhang,

Liu

2024

Tourism Economics

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This study highlights the importance of the relationship between housing prices and tourism labour mobility. This study uses dynamic panel threshold approach to examine the nonlinear effect of housing prices on tourism labour mobility in Chinese mainland during the years 2000-2021. The empirical results show that rising housing prices are positively associated with tourism and its subsectors’ employment across different levels of housing prices. At the regional level, there exists regional heterogeneity of housing price affecting labour mobility within tourism industry and its subsectors in Eastern, Central and Western regions. Lastly, further discussion and policy suggestion are provided.

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Understanding the Dynamics of Public Debt on Renewable Energy Investment in Developing Countries

Kushawaha,

Jain

2024

Preprint

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Non-linear Impacts of Public Debt on Growth, Investment and Credit: A Dynamic Panel Threshold Approach

Cited by 3 publications

References 76 publications

The causal relationship between public debt and economic growth in G7 countries: new evidence from time and frequency domain approaches

The causal relationship between public debt and economic growth in G7 countries: new evidence from time and frequency domain approaches

The effect of housing prices on tourism employment: Evidence from China

Understanding the Dynamics of Public Debt on Renewable Energy Investment in Developing Countries

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