Search

The concept of trusts, absent from the classical writings of Marx and Weber on capitalism, was introduced by Frederic Maitland and John Locke as an explanatory framework for the central institutions of capitalism. While these two theorists offered compelling arguments, they relied on intuition and utilized the concept primarily to justify the existing social structure. This paper aims to bring analytical rigor to this intuitive theory and proposes that critical theory embraces the idea of trusts as a critical conceptual tool to unravel the nature of capitalist institutions. Examining limited liability corporations, the modern state, and public debt, the incorporation of trusts into critical theory provides key advantages. First, it facilitates analyzing capitalist institutions in terms of rights and responsibilities, unveiling moral dynamics. Second, it highlights the role of personhood in distributing rights and responsibilities. Third, it can help understand why modern society is ensnared by the shackles of debt. [ABSTRACT FROM AUTHOR]

We empirically identify, measure, and describe the heterogeneity of the debt-growth nexus and the underlying factors that may explain it using panel data for 115 countries from 1995 to 2016. First, countries are endogenously grouped using the grouped fixed effects (GFE) estimator. The GFE estimator endogenously splits the sample into five groups of countries with a distinct estimated effect of public debt-to-GDP ratio on economic growth and allows us to investigate group-specific time-varying impacts. Then, we use a panel data analysis to explore the potential drivers affecting these heterogeneous links' time-varying magnitude. Our results suggest that the negative impact of public debt on economic growth is moderated by the quality of a country's institutions and the proportion of productive expenditure but intensified by indebtedness and the maturity of the debt. [ABSTRACT FROM AUTHOR]

This study empirically investigates the impact of public debt on women’s fertility. The study employs a dynamic common correlated mean group technique using data from a global sample of 78 countries, among which were 38 African and 40 non-African countries, for the period 1992–2018 to examine this linkage. Public debt is measured by external debt stocks, public and publicly guaranteed, while women’s fertility is captured by the fertility rate. This paper shows that public debt is positively associated with women’s fertility. Moreover, the degree of the impact of public debt on women’s fertility is relatively greater in African countries as compared to non-African countries. Therefore, if African and non-African countries want to reduce women’s fertility, they will have to reduce their level of public debt. [ABSTRACT FROM AUTHOR]

This study was carried out to ascertain the relationships between public debts and economic development in Nigeria. The specific objectives were to assess the effects of public debt on economic growth rate, aggregate demands, sectoral compositions and to find out if there exists any threshold relationship between debt accumulation and economic development in Nigeria. An ex-post facto research design was adopted in the study. With the aid of E-view statistical package, varied econometric analyses were conducted. Outcome of the study indicates that there exists a significant threshold relationship of between 50 and 60 percent for external debt, while a 15–17 percent threshold was established for domestic debt and debt accumulation in Nigeria. The study also reveals that external and domestic debts both have significant and largely negative impact on economic growth and development in Nigeria. The study therefore recommends that there is need for government at various levels in Nigeria to strive to reduce debt accumulation, especially in the long run by expanding her tax drag nets where necessary for overall and effective public financial management. There is also the need for a strong support for fiscal operations. Debt dependence in Nigeria was identified as a problem of fiscal federalism and claims to resource control among the federating units. It is also recommended that government must provide support for fiscal discipline. This could pave way for effective debt management practice in Nigeria. [ABSTRACT FROM AUTHOR]

The rapid public debt decrease at the end of World War II is regularly analysed as being the result of inflationary policies initiated by governments. This policy is said to be based on economic thinking that is less virulent towards inflation than during the interwar period. This article seeks to question this view by presenting a relatively unknown debate among French economists. By highlighting out two confidential studies made by the Institut de conjoncture, it shows that a minority of French economists developed a framework in which the call for inflation to reduce debt is well founded. [ABSTRACT FROM AUTHOR]

This study investigates the threshold effects of public debt on economic growth in developing countries using a dynamic panel threshold model over the years 1990–2020. To examine the heterogenous threshold effects of public debt, we classify the sample, on the World Bank's income-based classification, as lower-middle-income economies and upper-middle-income economies. We find that public debt negatively affects the economic growth of developing countries above the threshold level of 50.988%. Furthermore, public debt negatively affects economic growth beyond threshold levels of 50.243% and 62.646%, respectively, in the case of lower-middle-income economies and upper-middle-income economies; indicating heterogeneities in threshold effects across the two subsamples. Also, we find that inflation negatively affects the public debt-growth relationship above the threshold levels of 14.03% (whole sample), 15.101% (lower middle-income economies), and 9.628% (upper-middle-income economies), respectively. Our baseline results are unaltered and consistent throughout the robustness check exercises. Our results have important policy implications for developing countries in terms of designing prudent public debt management policies and inflation targeting policies, respectively. [ABSTRACT FROM AUTHOR]

This paper examines the causal relationships between public debt and economic growth. To that end, we employ the novel homogeneous approach to testing for Granger non-causality in a heterogeneous panel to a sample of 115 countries from 1995 to 2016. This methodology suits high persistence, moderate time dimension and heterogeneous nuisance parameters. Our results indicate that when examining the pairwise relationship, in most of cases, there is a unidirectional Granger-causality relationship running from debt to growth. Nevertheless, when controlling for the explanatory variables that have been consistently identified as drivers of growth in the literature, in all the cases, we find evidence of bidirectional Granger-causality between public debt and economic growth. [ABSTRACT FROM AUTHOR]

In this study, the effects on economic growth of financial pressure policies applied in OECD countries are examined. For this purpose, the "financial pressure index (FPI)" was calculated by using 10- year data for 2010--2020 from 37 OECD countries and "growth rates" were obtained. The FPI was calculated using (i) loans extended to the private sector, (ii) loans extended to the central government, (iii) interest payments and (iv) inflation rate data. In calculating FPI, first of all, the data was standardized. Following the standardization process, the data was weighted using Principal Component Analysis (PCA) to calculate the FPI. After weighting the data, each standardized value was aggregated by multiplying it by its own weighted value, and the final FPI was ultimately calculated. Economic growth rates were calculated as a percentage of GDP. Finally, the analysis was carried out by comparing the calculated FPI with the economic growth rates. According to the results of the analysis, the coefficient of FPI was statistically significant (p < 0.05). In this context, every 1-point increase in FPI reduced GDP by 0.178 points. [ABSTRACT FROM AUTHOR]

In the context of increasing globalization, income inequality becomes one of the severe problems in both advanced and developing economies. Meanwhile, public spending financed by public debt may be an appropriate instrument of fiscal policy to narrow this inequality in society. However, high public debt can lead to an economic crisis and social instability. Does public debt differently affect income inequality between advanced and developing economies? For the answer, the paper applies the two-step system GMM Arellano-Bond estimator and the PMG estimator to test the effect of public debt on income inequality for a group of 30 advanced economies and a group of 34 developing economies between 2002 and 2020. The paper notes some exciting results. First, public debt narrows income inequality in advanced economies but widens it in developing economies. Second, by contrast, economic growth increases income inequality in advanced economies but decreases it in developing economies. Third, unemployment in advanced economies and education in developing economies enhance income inequality. These findings suggest some policy implications for governments in developing economies in using appropriately spending financed by public debt to narrow income inequality in society. [ABSTRACT FROM AUTHOR]

This research examines the role of digitization in improving the impact of the quality of institutions on public debt. It studies a panel dataset for 12 Middle East and North Africa countries over 20 years. It aims to assess the function of digital governance in enhancing the ability of institutional frameworks to efficiently manage public debt. Specifically, it tests the effect of digitized quality of institutions on public debt by introducing government digitization into a consolidated quality of institutions metric, which is based on the worldwide governance indicators. We construct this metric using Principal Component Analysis, which sharply highlights the critical role of a holistic quality of institutions approach in public debt management. The research suggests utilizing a single-step Generalized Method of Moments estimation model, which is known for its robustness in studying dynamic panel datasets and includes associated diagnostic tests to properly validate estimation results. The findings demonstrate a positive and significant correlation between the digitized quality of institutions and public debt. The research provides a distinct understanding of institutional capacity enhancement for effective public debt management by integrating government digitization into the framework of governance itself. It provides invaluable insights for decision-makers, particularly in developing countries suffering from weak governance structures. By integrating digitization into the governance structures, countries enhance the quality and capacity of their institutions, which proves to be a critical factor in effective public debt management. [ABSTRACT FROM AUTHOR]

Forensic audit of public debt is an important tool for ensuring financial transparency and effective public finance management. In the context of Ukraine, given the difficult economic situation and high level of public debt, the use of forensic audit is of particular importance. The study aims to conduct a forensic audit of Ukraine’s public debt by assessing the consistency of financial statements of key government agencies, identifying discrepancies, and evaluating their potential impact on financial stability. The methodology includes a cross-analysis of financial data from the Ministry of Finance of Ukraine, the National Bank of Ukraine, the Accounting Chamber of Ukraine, and the State Treasury Service. The study also includes an assessment of compliance with international public sector auditing standards (ISSAI, IPSAS, and OECD principles). The results show discrepancies in key public debt indicators between the different reporting institutions, with variations in total debt, debt service costs, and classification methodologies. Key findings indicate inconsistencies in the timing of data publication, differences in accounting methodology, and gaps in debt transparency. These discrepancies pose risks to the effectiveness of financial policy, external creditworthiness, and overall macroeconomic stability. The study concludes that strengthening coordination between government agencies and integrating forensic audit mechanisms into the system of regular financial oversight is necessary to increase the transparency of public debt and reduce financial risks. The proposed recommendations will help to improve fiscal management and ensure the reliability of financial reporting in Ukraine's public debt management system. Acknowledgment Prepared as part of a research project 101127602-EUEPDM-ERASMUS-JMO-2023-HEI-TCH-RSCH – "EU experience in public debt management: conclusions for Ukraine in the war and post-war period". However, the views and opinions expressed are those of the authors alone and do not necessarily reflect the views of the European Union or the European Executive Agency for Education and Culture (EACEA). Neither the European Union nor EACEA can be held responsible for them.

Abstract This study was carried out to ascertain the relationships between public debts and economic development in Nigeria. The specific objectives were to assess the effects of public debt on economic growth rate, aggregate demands, sectoral compositions and to find out if there exists any threshold relationship between debt accumulation and economic development in Nigeria. An ex-post facto research design was adopted in the study. With the aid of E-view statistical package, varied econometric analyses were conducted. Outcome of the study indicates that there exists a significant threshold relationship of between 50 and 60 percent for external debt, while a 15–17 percent threshold was established for domestic debt and debt accumulation in Nigeria. The study also reveals that external and domestic debts both have significant and largely negative impact on economic growth and development in Nigeria. The study therefore recommends that there is need for government at various levels in Nigeria to strive to reduce debt accumulation, especially in the long run by expanding her tax drag nets where necessary for overall and effective public financial management. There is also the need for a strong support for fiscal operations. Debt dependence in Nigeria was identified as a problem of fiscal federalism and claims to resource control among the federating units. It is also recommended that government must provide support for fiscal discipline. This could pave way for effective debt management practice in Nigeria.

This article investigates the link between board members' past professional experiences and the terms and conditions of the debt contracts of their current firms. In particular, we examine whether directors' past bankruptcy experience affects the pricing and nonpricing terms of public debt contracts. Using a sample of 8,142 bond issues in the United States in the period 1995 to 2015, we document higher credit spreads and smaller bond sizes for firms with such directors, suggesting that bondholders are concerned about past bankruptcy experience. Our results remain robust to different model specifications. This effect is moderated for bankruptcies that are likely driven by macroeconomic shocks such as the dotcom bubble and the global financial crisis. We also show that our findings are not explained by bond issuers with an elevated risk of default and seem instead to be driven by directors serving on key monitoring committees, indicating that prior bankruptcy experience raises concerns about the company's corporate governance. Finally, mediation analysis offers some evidence of a limited negative indirect effect of prior bankruptcy experience on the terms of debt contracts through the firm's financial and investment policies. Overall, our findings suggest that lenders incorporate information about past professional experiences of directors into public debt contracting. [ABSTRACT FROM AUTHOR]

The article typifies the fiscal directions of public debt management in Ukraine in the conditions of the new economic normality and financial uncertainty caused by the Russian-Ukrainian war and other macroeconomic shocks. The accelerators of these shocks were the Ukrainian peace formula, the policy of adapting the national economic system to wartime conditions, and the triggers of post-war recovery, including those announced by the President of Ukraine, such as humanitarian demining, the reconstruction of energy facilities, and financial inclusion. The study is based on the author's adjustment model for assessing debt dynamics, which is widely used by the IMF, taking into account national specificities. The purpose of the work is to provide a long-term assessment (up to 2029) of fiscal stability, taking into account the invariance of macroeconomic factors and forecasts - GDP growth rates, inflation, exchange rate and debt structure. To this end, two target levels of public debt have been used in the study: 82% of GDP (according to IMF forecasts) and 60% of GDP (according to the Maastricht Treaty). The research methodology is based on the application of two empirical methods to assess debt dynamics: through debt issuance and financing needs. A ten-year statistical series (2015-2024) was used to construct scenarios for the evolution of debt dynamics, taking into account likely macroeconomic shocks. The modelling was grounded in the following variables: primary budget balance, effective interest rate, economic growth rate and exchange rate. Fan charts were employed to illustrate the risks and demonstrate the probability of reaching certain debt levels, depending on the invariance of the level of macroeconomic uncertainty. The findings of the study suggest that in order to attain the targeted public debt level of 82% of GDP, it is imperative to ensure an annual primary budget surplus amounting to 1.38% of GDP during the 2025–2029 period. To achieve a more ambitious goal involving a 60% of GDP target, it is necessary to establish conditions conducive to an annual surplus amounting to 2.43% of GDP. Utilising the aforementioned scenarios and macroeconomic shocks as a foundation, the article demonstrates that in the absence of fiscal correction measures, the public debt will surpass 100% of GDP by 2029. The principal risk factors identified in the study are as follows: low rates of economic growth, a high level of dependence on foreign aid, demographic challenges and high costs for meeting the needs of the security and defence forces. Empirical evidence has demonstrated that the exchange rate and the real interest rate are the predominant factors influencing debt dynamics, thereby exacerbating the debt burden. The conclusions emphasise the necessity to approximate the optimal practices of fiscal consolidation and to implement measures, including those envisaged by the National Revenue Strategy until 2030, in order to increase the revenues of the state budget of Ukraine. In addition, the introduction of a progressive scale of taxation on high incomes is justified and recommended, as are increased tax rates on real estate, rent, and natural resources, as well as increased excise taxes on tobacco, alcohol, and fuel. Furthermore, it emphasises the necessity of a gradual reduction in public expenditures, particularly in the post-war period. The purpose of this article is to provide a systematic overview of the international experience of countries recovering from conflicts. It is argued that in order to ensure the stability of public finances, it is necessary to reduce expenditure on security and defence forces, and on the public sector of the economy. In this context, it is assumed that one of the conditions for the successful implementation of the fiscal correction is the completion of the active phase of the war by the end of 2025 and the consideration of additional caveats regarding the maintenance of a high debt burden in the short, medium and probably the long term perspective due to significant budgetary costs for reconstruction of infrastructure, social protection and economic development. Taking into account the new economic normality and the likely risks (threats), the authors propose to revise the macroeconomic forecasts and to develop additional scenarios for fiscal risk management, including during the preparation of public debt management programmes for 2025-2029.

In the current geopolitical configuration, generated by socio-economic and political-military events, with an impact on economic development, the public debt dynamics take on new dimensions. Public debt, as an indispensable concept for improving development strategies in an economic and geopolitical context, is influenced by the macroeconomic indicators’ variation, but also by the internal and external factors’ impact, which generate instability in a dynamic of unpredictable phenomena. Therefore, the study indicates proposals, based on multivariate regression, to capture the most sensitive variations of macroeconomic indicators on sustainable development at the European Union countries level. Moreover, the current European level configuration requires a detailed capture of the connection between public debt and economic growth, by using a VAR model (public debt, a concept that takes on new values in the current context, and economic growth, as the central pillar of sustainable development, analyzed from the perspective of the studied indicators fluctuation). Finally, I analyzed the public debt dynamics for the next period (2000 – 2022) to create a realistic picture, using the ARMA model. The results confirm the direct impact of each event on economic growth and development, and the limitation and elimination of negative effects vary depending on how it is managed and prevented. Also, the link between the economic growth and public debt is confirmed and, at the same time, it constitutes a benchmark that captures the importance of the decisions of the responsible factors regarding the financial-monetary instruments implemented or what is requested to be adopted. In other words, forecasting the public debt dynamics gives a certain stability, but also a strategic vision, offering viable solutions to support sustainable development efforts at European states level.

This paper aims to bring Romanian research on public debt into the international spotlight, contextualizing it within the rising global debt levels caused by recent economic crises, such as the global financial crisis and the Covid-19 pandemic. The main goal is to highlight the importance of local research, often overlooked, while analyzing public debt through both global and local lenses. The first part of the paper analyzes the intensifying effects of globalization, accelerated by the Covid-19 pandemic, and the shift in how public debt is perceived, with a growing focus on investments and budget deficits. It also examines the challenges faced by decision-makers in managing debt sustainability, particularly the tension between political priorities and fiscal realities. The second part provides an empirical analysis of recent studies on the rise of global public debt, political economy factors, and credit cycles. The third section outlines the difficulties in governing public debt in the European Union due to the absence of a fiscal union and explores the concept of an optimal monetary zone. One of the central political issues raised is the tendency of politicians, especially in advanced economies, to exploit public debt for short-term electoral gains.

The issue of public and private debt has become one of the central themes in global economics and finance, especially in the context of the recent economic crisis and the expansion of financial markets. This paper brings together the findings of cerebral studies that explore the combined impact of public and private debt on economic growth with the focus on their interdependence as well as the implications for macroeconomic policies. Paper highlights how these types of debt influence each other and contribute to the financial stability or instability of both developed and emerging economies. Over the past decades, debt accumulation has become a key driver for economic development supporting investment in infrastructure and innovation. However these benefits come with significant risk, particularly when the level of indebtedness exceeds certain critical thresholds. Public debt is generally used to finance long-term projects and stimulate the economy during recessions, and private debt which contributes to consumption and private sector development are not easily isolated from one another. These two forms of debt interact in ways that can generate both positive synergies and amplify the negative effects. This paper brings together the conclusions of several studies that explore the combined impact of public and private debt on economic growth focusing on their interdependence and the implications for macroeconomic policies. Throughout the analysis of various perspectives ranging from critical debt thresholds to spillover effects between regions, the paper aims to provide the number of how that can become a systemic risk factor. Moreover, it explores the relationship between sovereign debt and the financial sector which can amplify vulnerabilities during crisis periods and presents the policies needed to manage these risks.

This paper aims to assess the compliance of the EU Member States with the previous debt rules over the period 2011-2023. To achieve this, we assessed two complementary criteria concerning public debt, respectively the compliance with the 60% of GDP threshold and the one related to the debt reduction rule, which indicates that Member States with public debt levels higher than 60% of GDP should reduce the difference between the level of public debt share in GDP and the 60% of GDP threshold with an average rate of 1/20 in the last three years. Further, we highlighted the reasons why the last economic governance framework was not effective and we presented the new debt rules in their revised form.

The purpose of this study was to present a systematic literature review on the public debt-economic growth nexus. The objective was to provide policymakers and researchers with significant insights on the impact of public debt on economic growth and to provide reliable evidence on the gaps in the literature that require their urgent attention. The study used a systematic review of the literature contained in two databases, namely Semantic Scholar and Google Scholar. The study shows that public debt above the threshold is detrimental to economic growth, while low public debt is conducive to growth, and that the degree of non-linearity in the debt-growth relationship varies considerably depending on the economic status and debt burden of the country. Policymakers in each country should identify the tipping point at which further public debt begins to impede growth. Debt policy should take into account not only fiscal constraints, but also the effectiveness of governance and the possible consequences of eroding public confidence. The study also shows that institutional quality, public investment, production expenditure, foreign direct investment and exports are among the variables that significantly affect the relationship between public debt and economic growth. Policymakers should control the level of public debt and its drivers to support longer-term economic growth. The study also recommends that countries account for public debt and ensure that such debt is acquired only to finance profitable investments that generate future returns, and not for consumption, deficit reduction, wasteful spending, or political purposes.

The rapid growth of public debt in developing countries in recent years and the increasing risks associated with this process emphasize the importance of research in this area. The article examines one of the key aspects of public debt management — the structure of creditors’ debt portfolio. The object of the study is the public debt of four countries of Central Asia and three countries of the South Caucasus. The states of this region are important foreign economic partners of Russia, their contribution to mutual trade and realization of joint projects is growing. Their role in the global and regional economy is also expanding, including participation in major transport and logistics projects designed to increase the connectivity of Eurasia. The study is based on the data of international organizations on the total volume of public debt, debt to individual external creditors and the dynamics of macroeconomic indicators. The article examines changes in the structure of the main groups of creditors for each country over three long-term periods and analyzes similarities and differences in the observed structural shifts. It also decomposes the indicator of public debt dynamics and estimates the contribution of the economic growth factor and the effects of changes in countries’ debt to certain groups of creditors. The study identified the following key trends in public debt structural changes: 1) the declining role of bilateral loans from developed and developing countries since the 2000s; 2) the continued strong influence of debt raised from international financial organizations and development banks in most countries throughout the period under study; 3) in a number of countries, a gradual increase in market sources of debt financing (domestic and Eurobonds); the increasing role of loans from China — in the Kyrgyz Republic and the Republic of Tajikistan, etc. The study identifies reasons for these structural changes, and concludes with a discussion of the risks associated with the observed shifts in the structure of public debt.

The paper focuses on the relationship between population diversity and macroeconomic outcomes. The econometric analysis using fixed and random effect panel data models was conducted in 27 European Union countries in 2000-2023. Changes in the population's diversity are measured using the decreasing transformation of the Herfindahl-Hirsch Index to express the ethnic, linguistic, and religious fragmentation of the population. To capture the overall effect of the changes in the diversity of the population in the European Union, the composite index based on principal component analysis is constructed. The first component with the highest eigenvalue is a regressor of selected macroeconomic outcomes - economic growth, public debt, and income disparities. Besides, the other public policy outcome - political instability, which affects the macroeconomic outcomes, is also considered. As expected, the increasing diversity of the population is observed. It has a statistically significant positive relationship with public debt, income disparities, and political instability, while in negative with economic growth. [ABSTRACT FROM AUTHOR]

In 2021, a group of economists launched a proposal asking for the write-off of the public debt built-up in the ECB's balance sheet and an increase in public spending for a similar amount. This proposal generated strong criticism, which can be organized into three blocks: (i) debt relief occurs when a central bank purchases public debt, and its cancellation does not improve the situation faced by governments; (ii) the proposal is grounded in an erroneous concept of 'fiscal space', and there are better alternatives for the financing of public spending; (iii) the proposal would be counterproductive or illegal. This article rebuts those criticisms, finding the plan helpful to avoid a return to fiscal austerity. More specifically, debt cancellation makes quantitative easing, the unconventional monetary policy that justified the purchase of public debt, irreversible whilst simultaneously increasing the fiscal space of Eurozone Member States. Finally, and most relevant, the proposal includes a specific commitment to an increase in public spending. [ABSTRACT FROM AUTHOR]

The purpose of this study was to present a systematic literature review on the public debt-economic growth nexus. The objective was to provide policymakers and researchers with significant insights on the impact of public debt on economic growth and to provide reliable evidence on the gaps in the literature that require their urgent attention. The study used a systematic review of the literature contained in two databases, namely Semantic Scholar and Google Scholar. The study shows that public debt above the threshold is detrimental to economic growth, while low public debt is conducive to growth, and that the degree of non-linearity in the debt-growth relationship varies considerably depending on the economic status and debt burden of the country. Policymakers in each country should identify the tipping point at which further public debt begins to impede growth. Debt policy should take into account not only fiscal constraints, but also the effectiveness of governance and the possible consequences of eroding public confidence. The study also shows that institutional quality, public investment, production expenditure, foreign direct investment and exports are among the variables that significantly affect the relationship between public debt and economic growth. Policymakers should control the level of public debt and its drivers to support longer-term economic growth. The study also recommends that countries account for public debt and ensure that such debt is acquired only to finance profitable investments that generate future returns, and not for consumption, deficit reduction, wasteful spending, or political purposes. [ABSTRACT FROM AUTHOR]

Public debt is a key macroeconomic indicator that shapes a country's reputation. It remains a significant economic policy challenge for governments in less developed countries due to high debt levels. The aim of this paper is to investigate the relationship between Albania's public debt and foreign direct investments (FDI). For that purpose, first a descriptive research design is employed and second the data are examined through VAR (Vector Autoregression) and Granger causality tests. The VAR autoregression results indicate that in the short term, public debt and FDI are not significantly correlated. In addition, the Granger causality tests reveal no significant causality between FDI and public debt or between exchange rates and public debt. However, there is a bi-directional causality between FDI and exchange rates. Policymakers should focus on debt management, economic openness, and infrastructure development to create a favorable environment for attracting foreign investment. The findings underscore the need for balanced fiscal policies to support long-term economic growth and investment stability. [ABSTRACT FROM AUTHOR]

Several economic theories conclude that the relationship between public sector governance and macroeconomic stability is direct as better public sector governance improves economic stability or reduces macroeconomic instability. However, the literature provides us positive, negative and insignificant relationship between the both. Following the idea, our study aims to evaluate the mediating role of public debt in governance-stability association. For estimation, we have used a panel data of 102 developed and developing nations for the period 1996-2021 and employed one-way random effect estimator for the Seemingly Unrelated Regression system, as suggested by Biørn (2014). Our findings show that the public sector governance effectively improves macroeconomic stability through the channel of public debt for developed economies, however in the case of developing economies the role of public debt is quite opposite and relationship is negative. So, it is concluded that public sector governance improves the macroeconomic stability not only directly, but also indirectly through the channel of public sector debt. [ABSTRACT FROM AUTHOR]

Digital infrastructure has the potential to help achieve global carbon neutrality by promoting the use of renewable energy (RE) in economic operations. Therefore, it aids in the growth of a sustainable economy and society. Digital infrastructure and efficient budget allocation are the determinants of a modern and digital society. In this context, public debt plays an important role if it is invested in digital infrastructure projects. Taking this into account, we examine the relationship between carbon (CO2) emissions and digital infrastructure moderated by public debt in G20 countries for the period 2003–2021. The study employed advanced econometric techniques for panel data that are robust to solving the problem of cross-sectional dependency. As a result, cross-sectionally augmented autoregressive distributed lag (CS-ARDL) estimation technique was employed. The results indicate that digital infrastructure has a negative impact on CO2 emissions. Conversely, we find that public debt has a positive impact on CO2 emissions. Furthermore, the study confirms that the interaction between digital infrastructure and public debt has a negative effect on CO2 emissions. This implies that public debt, if used in digital infrastructure projects, leads to a decrease in CO2 emissions. To reduce CO2 emissions, it is recommended that G20 nations give priority to upgrading digital infrastructure while maintaining a manageable level of public debt. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Economics & Administrative Sciences is the property of Republic of Iraq Ministry of Higher Education & Scientific Research (MOHESR) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)