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자료유형
학술저널
저자정보
Bagchi Sagnik (Department of Humanities and Social Sciences The LNM Institute of Information Technology Jaipur Ind) Bandhu Majumder Sayantan (Department of Economics St. Xavier’s University Kolkata India) Banerjee Somdutta (Centre for WTO Studies New Delhi India)
저널정보
한국국제경제학회 International Economic Journal International Economic Journal Vol.37 No.2
발행연도
2023.6
수록면
245 - 269 (25page)
DOI
10.1080/10168737.2023.2184845

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The last decade witnessed global debt levels to reach record high. In Emerging Market and Developing Economies (EMDEs) like never before, the (public and private) debt–GDP ratio has been dismally high. An upward spree of the debt–GDP ratio coupled with a loom- ing economic crisis led to concerns about institutional qualities (IQ). We explore how different dimensions of IQ (namely, political, legal and governance) impact the debt–growth relationship in the EMDEs amidst the current fourth wave of debt (2010–2019). We examine whether the relation is monotonic or it varies around a particular threshold value of IQ. By applying a dynamic panel threshold regression model, we obtain two regime-dependent marginal effects of regressors (upper and lower regimes) that are distinguished by a threshold value of IQ. Our results reveal that for each of our considered IQ, there exists a statistically significant threshold value. For public debt, across all dimensions of IQ debt hurts growth in the lower regime, while in the upper regime the association is favourable. While private debt is growth enhancing in the lower regime of all IQs (excepting corruption), while it is inimical in the upper regime.

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