Document type
ArticleVersion
Accepted versionPublication date
Publication license
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/106985
On the bi-directional causal relationship between public debt and economic growth in EMU countries
Journal Title
Director/Tutor
Journal ISSN
Volume Title
Related resource
Abstract
New evidence is presented on the possible existence of bi-directional causal relationships between public debt and economic growth in both central and peripheral countries of the European Economic and Monetary Union. We test for heterogeneity in the bi-directional Granger-causality across both time and space during the period between 1980 and 2013. The results suggest evidence of a "diabolic loop" between low economic growth and high public debt levels in Spain after 2009. For Belgium, Greece, Italy and the Netherlands debt has a negative effect over growth from an endogenously determined breakpoint and above a debt threshold ranging from 56% to 103% depending on the country.
Subject (English)
Citation
Collections
Citation
GÓMEZ-PUIG, Marta and SOSVILLA RIVERO, Simón. On the bi-directional causal relationship between public debt and economic growth in EMU countries. Journal of Policy Modeling. 2015. Vol. 37, num. 6, pags. 974-989. ISSN 0161-8938. [consulted: 17 of June of 2026]. Available at: https://hdl.handle.net/2445/106985