The Relationship between Public Debt, Budget Deficit, and Sustainable Economic Development in Developing Countries: The Role of Corruption Control

<p>This study investigates the effects of public debt and budget deficits on the sustainable economic development of developing countries, taking into account the role of control of corruption. The two-step GMM method was applied for unbalanced panel data of 59 developing countries from 2004 t...

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Autores principales:	Vo Thi Thuy Van, Nguyen Tran Thai Ha, Phan Gia Quyen, Le Thi Hong Anh, Do Thanh Loi
Formato:	article
Lenguaje:	EN
Publicado:	Universitas Muhammadiyah Yogyakarta 2020
Materias:	public debt budget deficit sustainable economic development corruption developing countries Economic theory. Demography HB1-3840
Acceso en línea:	https://doaj.org/article/b8edb2ced9c24cd3b7aa605876558cac
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spelling	oai:doaj.org-article:b8edb2ced9c24cd3b7aa605876558cac2021-12-02T12:35:34ZThe Relationship between Public Debt, Budget Deficit, and Sustainable Economic Development in Developing Countries: The Role of Corruption Control1411-99002541-5506https://doaj.org/article/b8edb2ced9c24cd3b7aa605876558cac2020-04-01T00:00:00Zhttps://journal.umy.ac.id/index.php/esp/article/view/8224https://doaj.org/toc/1411-9900https://doaj.org/toc/2541-5506<p>This study investigates the effects of public debt and budget deficits on the sustainable economic development of developing countries, taking into account the role of control of corruption. The two-step GMM method was applied for unbalanced panel data of 59 developing countries from 2004 to 2015. The study found that public debt and the budget deficit had negative effects on sustainable development, while the effect of control of corruption was positive. Moreover, using interaction terms between control of corruption and public debt and budget deficit, respectively, empirical results showed that controlling corruption limited these adverse effects. Thus, if the objective is to achieve sustainable economic development, developing countries should not see raising public debt or maintaining budget deficits as a strategy for economic development. The study contributes empirical evidence to the theory of debt overhang, crowded effects, and institutional theory in the context of developing countries. The implications are also discussed in this paper.</p>Vo Thi Thuy VanNguyen Tran Thai HaPhan Gia QuyenLe Thi Hong AnhDo Thanh LoiUniversitas Muhammadiyah Yogyakartaarticlepublic debtbudget deficitsustainable economic developmentcorruptiondeveloping countriesEconomic theory. DemographyHB1-3840ENJurnal Ekonomi & Studi Pembangunan, Vol 21, Iss 1, Pp 84-104 (2020)
institution	DOAJ
collection	DOAJ
language	EN
topic	public debt budget deficit sustainable economic development corruption developing countries Economic theory. Demography HB1-3840
spellingShingle	public debt budget deficit sustainable economic development corruption developing countries Economic theory. Demography HB1-3840 Vo Thi Thuy Van Nguyen Tran Thai Ha Phan Gia Quyen Le Thi Hong Anh Do Thanh Loi The Relationship between Public Debt, Budget Deficit, and Sustainable Economic Development in Developing Countries: The Role of Corruption Control
description	<p>This study investigates the effects of public debt and budget deficits on the sustainable economic development of developing countries, taking into account the role of control of corruption. The two-step GMM method was applied for unbalanced panel data of 59 developing countries from 2004 to 2015. The study found that public debt and the budget deficit had negative effects on sustainable development, while the effect of control of corruption was positive. Moreover, using interaction terms between control of corruption and public debt and budget deficit, respectively, empirical results showed that controlling corruption limited these adverse effects. Thus, if the objective is to achieve sustainable economic development, developing countries should not see raising public debt or maintaining budget deficits as a strategy for economic development. The study contributes empirical evidence to the theory of debt overhang, crowded effects, and institutional theory in the context of developing countries. The implications are also discussed in this paper.</p>
format	article
author	Vo Thi Thuy Van Nguyen Tran Thai Ha Phan Gia Quyen Le Thi Hong Anh Do Thanh Loi
author_facet	Vo Thi Thuy Van Nguyen Tran Thai Ha Phan Gia Quyen Le Thi Hong Anh Do Thanh Loi
author_sort	Vo Thi Thuy Van
title	The Relationship between Public Debt, Budget Deficit, and Sustainable Economic Development in Developing Countries: The Role of Corruption Control
title_short	The Relationship between Public Debt, Budget Deficit, and Sustainable Economic Development in Developing Countries: The Role of Corruption Control
title_full	The Relationship between Public Debt, Budget Deficit, and Sustainable Economic Development in Developing Countries: The Role of Corruption Control
title_fullStr	The Relationship between Public Debt, Budget Deficit, and Sustainable Economic Development in Developing Countries: The Role of Corruption Control
title_full_unstemmed	The Relationship between Public Debt, Budget Deficit, and Sustainable Economic Development in Developing Countries: The Role of Corruption Control
title_sort	relationship between public debt, budget deficit, and sustainable economic development in developing countries: the role of corruption control
publisher	Universitas Muhammadiyah Yogyakarta
publishDate	2020
url	https://doaj.org/article/b8edb2ced9c24cd3b7aa605876558cac
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The Relationship between Public Debt, Budget Deficit, and Sustainable Economic Development in Developing Countries: The Role of Corruption Control

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