Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245228 
Year of Publication: 
2019
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 7 [Issue:] 1 [Publisher:] Taylor & Francis [Place:] Abingdon [Year:] 2019 [Pages:] 1-15
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
The issue of whether public debt is useful or harmful towards economic growth is one of the most prevailing debates in the literature with no consensus existing on the subject matter. The study employs the ARDL model to examine the long-run and short-run effects of public debt on economic growth for South African data spanning a period between 2002:q1 to 2016:q4. Our sensitivity analysis consists of re-estimating our empirical regressions using two sub-samples dataset corresponding to the post-crisis period (i.e. 2007:q3 to 2016:q4). All estimated regressions unanimously find negative debt-growth relationship, with the negative relationship strengthening in the post-crisis period. Overall, our empirical results have some useful ramifications towards fiscal policymakers.
Subjects: 
Public debt
economic growth
ARDL cointegration
financial crisis
South Africa
JEL: 
C32
C51
H60
O40
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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