Budget Deficit and Public Debt Management in Developing Countries

Adedokun Adeniyi Jimmy

Abstract


Most of the studies on budget deficit and investment nexus in developing countries have identified that budget deficit has negative impact on investment and growth. This paper in its scope seeks to dwell on the policy implications of the empirical findings. Thus, it focuses on possible reasons for the empirical findings, practical countermeasures to improve public debt governance and finally, how resistance to effective debt control can be overcome.

Keywords


Budget deficit; Investment; Developing countries; Public debt governance; Debt control

Full Text:

PDF

References


Adedokun, A. J. (2014). The effect of budget deficit on investment in Nigeria: An empirical study. The IUP Journal of Applied Economics, XIII(2).

Alesina, A., Ardagna, S., Perotti, R., & Schiantarelli, F. (2002). Fiscal policy, profits, and investment. American Economic Review, 92(3), 571-589.

Ali, B. M., & Mshelia, S. I. (2007). Impact of external debt services on Nigeria’s economy, Global Journal of Social Sciences, 6(2), 111-118.

Barro, R. J. (1974). Are government bonds net wealth. Journal of Political Economy, 82(6), 1095-1117.

Borensztein, E. (1990, September). Debt overhang, debt reduction and investment: The case of the Philippines. International Monetary Fund Working Paper, (WP/90/77).

Cohen, D. (1993). Low investment and large LDC debt in the 1980’s. The American Economic Review, 83(3), 437-449.

Elbadawi, A. I., Ndulu, J. B. , & Ndung’u, N. (1996, December). Debt overhang and economic growth in sub-Saharan Africa. Paper presented at the IMF/World Bank Conference on External Financing for Low Income Countries, Washington.

Iyoha, M. A. (1999, May). External debt and economic rrowth in sub-Saharan African countries: An econometric study. Paper Presented at AERC Workshop, Nairobi.

Perasso, G. (1992). Debt reduction versus appropriate domestic policies. Kyklos, 45(4), 457-467.

The World Bank. (1993, May-July). World Bank Policy Research Bulletin, (Vol. 4, No.3).

Traum, N., & Yang, S. (2010). Does government debt crowd out investment? A Bayesian DSGE approach. Retrieved from http://www.cbo.gov/ftpdocs/114xx/doc11430/04-2010-Working Paper-Crowding out.pdf.

Warner, A. M. (1992). Did the debt crisis cause the investment crisis. Quarterly Journal of Economics, 107(4), 1161-1186.




DOI: http://dx.doi.org/10.3968/5045

Refbacks

  • There are currently no refbacks.


Copyright (c)



Share us to:   

Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.


We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:
[email protected]; [email protected]; [email protected]

 Articles published in Management Science and Engineering are licensed under Creative Commons Attribution 4.0 (CC-BY).

 MANAGEMENT SCIENCE AND ENGINEERING Editorial Office

Address:1055 Rue Lucien-L'Allier, Unit #772, Montreal, QC H3G 3C4, Canada.

Telephone: 1-514-558 6138
Http://www.cscanada.net Http://www.cscanada.org

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures