{
  "title": "Public Debt and Growth",
  "publication": "IMF Working Papers, July 1, 2010",
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  "summary": "This paper explores the impact of high public debt on long-run economic growth. The analysis, based on a panel of advanced and emerging economies over almost four decades, takes into account a broad range of determinants of growth as well as various estimation issues including reverse causality and",
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    {
      "heading": "Key findings",
      "content": "- The empirical results suggest an inverse relationship between initial debt and subsequent growth.\n- On average, a 10 percentage point increase in the initial debt-to-GDP ratio is associated with a slowdown in annual real per capita GDP growth of around 0.2 percentage points per year.\n- The impact is somewhat smaller in advanced economies.\n- There is some evidence of nonlinearity with higher levels of initial debt having a proportionately larger negative effect on subsequent growth.\n- The adverse effect largely reflects a slowdown in labor productivity growth mainly due to reduced investment and slower growth of capital stock."
    },
    {
      "heading": "Analysis and scope",
      "content": "- Analysis based on a panel of advanced and emerging economies over almost four decades.\n- The study takes into account a broad range of determinants of growth and addresses estimation issues including reverse causality and endogeneity.\n- Threshold effects, nonlinearities, and differences between advanced and emerging market economies are examined."
    },
    {
      "heading": "Methodology and technical notes",
      "content": "- Estimation techniques and considerations include addressing reverse causality and endogeneity.\n- The study examines threshold effects and nonlinearities across country groups (advanced and emerging).\n\n---\n\n Content in this bundle\n\n- Public Debt and Growth;by Manmohan S. Kumar and Jaejoon Woo; IMF Working Paper 10/174;July 1, 2010\n  - Public Debt and Growth;by Manmohan S. Kumar and Jaejoon Woo; IMF Working Paper 10/174;July 1, 2010 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Public Debt and Growth;by Manmohan S. Kumar and Jaejoon Woo; IMF Working Paper 10/174;July 1, 2010 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/public-debt-and-growth-24080"
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    "Authors: Jaejoon Woo, Manmohan S. Kumar",
    "Published: July 1, 2010",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781455201853.001",
    "The empirical results suggest an inverse relationship between initial debt and subsequent growth.",
    "On average, a 10 percentage point increase in the initial debt-to-GDP ratio is associated with a slowdown in annual real per capita GDP growth of around 0.2 percentage points per year.",
    "The impact is somewhat smaller in advanced economies.",
    "There is some evidence of nonlinearity with higher levels of initial debt having a proportionately larger negative effect on subsequent growth.",
    "The adverse effect largely reflects a slowdown in labor productivity growth mainly due to reduced investment and slower growth of capital stock.",
    "Analysis based on a panel of advanced and emerging economies over almost four decades.",
    "The study takes into account a broad range of determinants of growth and addresses estimation issues including reverse causality and endogeneity.",
    "Threshold effects, nonlinearities, and differences between advanced and emerging market economies are examined.",
    "Estimation techniques and considerations include addressing reverse causality and endogeneity.",
    "The study examines threshold effects and nonlinearities across country groups (advanced and emerging).",
    "**Public Debt and Growth;by Manmohan S. Kumar and Jaejoon Woo; IMF Working Paper 10/174;July 1, 2010**"
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      "title": "Public Debt and Growth;by Manmohan S. Kumar and Jaejoon Woo; IMF Working Paper 10/174;July 1, 2010",
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