Academic literature on the topic 'Public debt'

This statistical file is concerned with the issue of public debts in Arab countries. It assumes that public debt is a key source to fund the budget deficit in most Arab countries, and the rising public debt, particularly external debt, is increasingly becoming a concern for several countries in the region due to the pressure debt servicing might impose on these countries, which basically suffer an uncomfortable primary balance, in addition to the impact of crises in the region. Table 1 provides indicators on domestic public debts with ratios of debts to GDP, while Table 2 gives figures of external public debts with debt ratios to GDP. Table 3 provides estimates of total public debts with their ratios to GDP, while Tables 4 and 5 show figures of external public debt service, ratios of debt servicing to exports of goods and services and external public debt service ratios to Arab governments’ revenues respectively.

The problems of the Russia’s debt management are revealed. Evolution of the public debts’ problem of the Russian Federation including the question of its interaction with private debts is discussed. Risks in debt sphere are analyzed. Specific features of the Russian economy such as the dependence on world energy prices, low efficiency of public expenditures, rapid growth of internal public debts and external quasi-sovereign and private debts are defined. Principles of debt management and areas of improvement in the system of Russia’s debt management were defined.

Abstract. Introduction. This article is devoted to the state of public global public debt and new approaches towards its regulation in both developed and developing countries. The theoretical and methodological bases of effective external debt management are considered in the paper. Globalization of the world economy and finance has led to increasing of funds raised in the international debt market and strengthened its part in the system of world finance. Purpose. The subject of this research is public debt in different groups of countries. Analysis of the situation with global public debt and the peculiarities of its regulation is necessary to learn positive foreign experience for its possible application. The following factors of significant increase of public debt are outlined: severe reduction of economic activity and decline in government revenue; increase of public spending, including related to anti-crisis measures; growing primary deficit, and this, the need to increase borrowings. The countries with low and middle income additionally face significant capital outflows from their financial markets, devaluation of national currencies, and difficulties with debt refinancing. Results. The article examines the problem of the external debts growth of different countries, dynamics and modern structure of the global external debts and efforts made by the international institutions and national regulators in order to tighten control over operations in the international debt market. The author comes to conclusion that an aggravation of the problem of external debts globalization hampers the restoration of stability and sustainable growth of the modern world economy. The main tasks performed in the process of public debt management are determined. The means of debt management, in particular, the mechanisms for restructuring public debts, are determined. The paper reviews the organizations involved in the restructuring of public debt. Conclusions. The obtained results can be used for further prospective studies of external debt management mechanisms taking into account world practice, as well as for the implementation of debt policy instruments in the crisis period.

The Nigerian government has been borrowing hugely over the years to finance her budget. However, the patterns of spending have shown to be more on recurrent expenditure and servicing of debt. Such spending pattern tends to caused domestic investment to decline and sometimes unstable. The continuous increase in Nigeria’s public debts, it’s associated rising debt service and declining/unstable domestic investment, motivated this study. Consequently, the aim of the paper is to investigate how Nigeria’s public debts have impacted on the country’s private domestic investment using time series data from 1981 to 2021. The data were estimated using the Auto-distributed Lag Model (ARDL) and Error Correction Model (ECM) techniques of analysis. Cointegration test showed that long-run (or equilibrium) relationship exists between public debt and private domestic investment in Nigeria. Findings from the study revealed that public external debt and pubic domestic debt have negative relationship with private domestic investment, while public debt service has positive relationship with private domestic investment. The study concluded that public debt have significant impact on private domestic investment due to the joint result of the Wald test. The paper recommended that the Debt Management Office (DMO) of Nigeria who is vested with the management of the country’s debt should advice the federal government to minimize or discourage the collection of debts to fund her budget. Also, the funds borrowed should be channeled into investment on projects that will improve private domestic investment.

This study investigates the effect of Nigeria’s domestic public debt on economic development of Nigeria spanning from 1981-2018. This is in response to the doubts being raised in some quarters as to whether the continuous increase in domestic debt over the years has led to the economic development of Nigeria as the former has been known to influence the later if well harnessed and executed. The secondary data used in the study were sourced from Central Bank of Nigeria Statistical Bulletin, Debt Management Office of Nigeria, World Bank Development Indicators and United Nations Development Program. The study made use of Ordinary Least Square Regression tools to determine the statistical relationship between Nigeria’s domestic public debt profile and Human Development Index as well as private sector investment. The outcome of study in the first model showed that domestic debt servicing and state governments’ domestic debts are significantly related to economic development. On the other hand, Federal domestic debt and State domestic debt are significantly related to private sector investment. The study therefore recommends that government should be cautious in her domestic borrowing policy given that servicing debt always becomes a burden to the sustainability of economic gains, in addition to its tendency of crowding-out private sector investment in Nigeria.

The study was centered on the effect of public debt on economic growth in Nigeria. Given the impact of debt burden on economic growth and other macro-economic parameters, total debt was disaggregated into domestic, external and debt servicing cost. The data was obtained from the Debt Management Office and Federal Office of Statistics. For ease of analysis, the study employed Vector Error Correction Model (VECM) due to the presence of long run relationship identified during data diagnosis. The findings confirmed that domestic debt in the short run is inversely related to growth but positively related in the long run provided it is done with moderation where the total domestic debt did not outweigh 30% of the total domestic bank deposits against crowding out effects. The impact of external debts was both negatively related to economic growth at both short run and long run period due to possible wrong application of loans to project types. It was also important to note that debt servicing posits a major evil plaguing the economy of the country. In summary, the findings confirm that public debts significantly do affect economic growth and against their justification for infrastructural development on fixed capital formation, it was also revealed that it is non-incentive to economic growth, due to wrong resource allocation and timing of such fixed capital investment for appropriate economic growth drive and stimulation. The coefficients of most of these parameters are all statistically significant at 5% confident level. Policy recommendation from the study is that government should only borrow on items that can repay, what the loan was collected for, in the first place. Keywords; Crowding effects, debt financing, debt overhang, Fixed capital formation, economic growth, Nigeria economy

The huge infrastructure deficit in Nigeria underscores the need for capital mobilization required to finance activities and ensure sustainable growth and development. This study examined the effect of public debt on the economic development of Nigeria covering the period 1990-2019. Domestic public debt, External public debt, Total public debt, and public debt servicing represented independent variables. Per capita income was the dependent variable. Ex post facto research design was adopted for the study. Data was sourced from the Central Bank of Nigeria Statistical Bulletin and Globaleconomy.com. The study used Augmented Dickey-Fuller (ADF) unit root test to test for the stationarity of the variables while the Johansen cointegration test was used to establish that a long-run relationship exists among the variables. Ordinary Least squares (OLS) and Error Correction Model (ECM)) were the tools used for analysis. Results showed that domestic debt and external debts each has a negative and statistically significant effect on per capita income while total public debt and public debt servicing showed a positive and statistically significant effect on per capita income respectively. Based on the findings, the study concluded that neither external debt nor domestic debt has been able to singly spur economic development while total public debt which is the combination of domestic and external public debt positively drive economic growth, thereby, improving the per capita income of the citizens in Nigeria.