The threshold effects of public debt on economic growth in MENA countries: Do energy endowments matter?

<p>We investigate the effects of public debt on economic growth and examine its viability as a policy tool to spur economic growth using a sample of 14 Middle Eastern and North African countries over the period 1980–2021. We reveal that the relationship between public debt and economic growth...

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محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Mouyad Alsamara (17823668) (author)
مؤلفون آخرون: Zouhair Mrabet (17863070) (author), Karim Mimouni (17823671) (author)
منشور في: 2024
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author Mouyad Alsamara (17823668)
author2 Zouhair Mrabet (17863070)
Karim Mimouni (17823671)
author2_role author
author
author_facet Mouyad Alsamara (17823668)
Zouhair Mrabet (17863070)
Karim Mimouni (17823671)
author_role author
dc.creator.none.fl_str_mv Mouyad Alsamara (17823668)
Zouhair Mrabet (17863070)
Karim Mimouni (17823671)
dc.date.none.fl_str_mv 2024-01-01T00:00:00Z
dc.identifier.none.fl_str_mv 10.1016/j.iref.2023.10.015
dc.relation.none.fl_str_mv https://figshare.com/articles/journal_contribution/The_threshold_effects_of_public_debt_on_economic_growth_in_MENA_countries_Do_energy_endowments_matter_/25101314
dc.rights.none.fl_str_mv CC BY 4.0
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Commerce, management, tourism and services
Banking, finance and investment
Economics
Econometrics
Public debt
Economic growth
Energy endowment
Debt threshold
dc.title.none.fl_str_mv The threshold effects of public debt on economic growth in MENA countries: Do energy endowments matter?
dc.type.none.fl_str_mv Text
Journal contribution
info:eu-repo/semantics/publishedVersion
text
contribution to journal
description <p>We investigate the effects of public debt on economic growth and examine its viability as a policy tool to spur economic growth using a sample of 14 Middle Eastern and North African countries over the period 1980–2021. We reveal that the relationship between public debt and economic growth varies between oil and non-oil countries. Specifically, we find that the debt threshold hovers around 46%–69% for oil countries and 74%–81% for non-oil countries depending on the specification employed. Furthermore, our findings highlight that the implications of public debt on economic growth are more favorable for non-oil countries, regardless of the actual level of debt in comparison to the threshold. Notably, when a country's debt lies beneath the threshold, the positive impact of borrowing on economic growth is more pronounced for non-oil countries. Similarly, once the level of debt surpasses the threshold, the adverse effects of indebtedness on economic growth are less severe for this particular group of countries. Our findings are critically important for policymakers and demonstrate the importance of a country’ energy endowment in moderating the relationship between debt and economic growth.</p><h2>Other Information</h2> <p> Published in: International Review of Economics & Finance<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.iref.2023.10.015" target="_blank">https://dx.doi.org/10.1016/j.iref.2023.10.015</a></p>
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identifier_str_mv 10.1016/j.iref.2023.10.015
network_acronym_str Manara2
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oai_identifier_str oai:figshare.com:article/25101314
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spelling The threshold effects of public debt on economic growth in MENA countries: Do energy endowments matter?Mouyad Alsamara (17823668)Zouhair Mrabet (17863070)Karim Mimouni (17823671)Commerce, management, tourism and servicesBanking, finance and investmentEconomicsEconometricsPublic debtEconomic growthEnergy endowmentDebt threshold<p>We investigate the effects of public debt on economic growth and examine its viability as a policy tool to spur economic growth using a sample of 14 Middle Eastern and North African countries over the period 1980–2021. We reveal that the relationship between public debt and economic growth varies between oil and non-oil countries. Specifically, we find that the debt threshold hovers around 46%–69% for oil countries and 74%–81% for non-oil countries depending on the specification employed. Furthermore, our findings highlight that the implications of public debt on economic growth are more favorable for non-oil countries, regardless of the actual level of debt in comparison to the threshold. Notably, when a country's debt lies beneath the threshold, the positive impact of borrowing on economic growth is more pronounced for non-oil countries. Similarly, once the level of debt surpasses the threshold, the adverse effects of indebtedness on economic growth are less severe for this particular group of countries. Our findings are critically important for policymakers and demonstrate the importance of a country’ energy endowment in moderating the relationship between debt and economic growth.</p><h2>Other Information</h2> <p> Published in: International Review of Economics & Finance<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.iref.2023.10.015" target="_blank">https://dx.doi.org/10.1016/j.iref.2023.10.015</a></p>2024-01-01T00:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1016/j.iref.2023.10.015https://figshare.com/articles/journal_contribution/The_threshold_effects_of_public_debt_on_economic_growth_in_MENA_countries_Do_energy_endowments_matter_/25101314CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/251013142024-01-01T00:00:00Z
spellingShingle The threshold effects of public debt on economic growth in MENA countries: Do energy endowments matter?
Mouyad Alsamara (17823668)
Commerce, management, tourism and services
Banking, finance and investment
Economics
Econometrics
Public debt
Economic growth
Energy endowment
Debt threshold
status_str publishedVersion
title The threshold effects of public debt on economic growth in MENA countries: Do energy endowments matter?
title_full The threshold effects of public debt on economic growth in MENA countries: Do energy endowments matter?
title_fullStr The threshold effects of public debt on economic growth in MENA countries: Do energy endowments matter?
title_full_unstemmed The threshold effects of public debt on economic growth in MENA countries: Do energy endowments matter?
title_short The threshold effects of public debt on economic growth in MENA countries: Do energy endowments matter?
title_sort The threshold effects of public debt on economic growth in MENA countries: Do energy endowments matter?
topic Commerce, management, tourism and services
Banking, finance and investment
Economics
Econometrics
Public debt
Economic growth
Energy endowment
Debt threshold