Prague Economic Papers 2023, 32(4):350-366 | DOI: 10.18267/j.pep.834

Government Debt and Economic Freedom in the CEE countries. Less is More

Petru-Ovidiu Mura ORCID...a, Liliana Eva Donath ORCID...a
a West University of Timisoara, Faculty of Economics and Business Administration, Timisoara, Romania

Government debt has increased not only in times of economic stress, but it has become a com- mon manifestation of government expenditure funding. The aim of the paper is to inspect the effect of government debt on economic freedom in ten CEE countries between 1995 and 2020 using a panel model approach. Selected quantitative and qualitative variables were examined to validate the hypothesis, including public governance indicators, besides the economic ones. Based on a robust panel setting, we conclude that government debt has a negative impact on economic freedom. A causality from government debt to economic freedom is detected to- gether with a long-term equilibrium relationship between them, with both a long-run and a short-run negative impact of debt on economic freedom. For the considered countries, the gross debt impacts economic freedom and not vice-versa.

Klíčová slova: government debt, economic freedom, CEE countries, fixed and random effects, Granger causality, Vector Error Correction Model
JEL classification: C33, H63, O52

Vloženo: 13. duben 2022; Revidováno: 31. březen 2023; Přijato: 1. duben 2023; Zveřejněno: 24. srpen 2023  Zobrazit citaci

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Mura, P., & Donath, L.E. (2023). Government Debt and Economic Freedom in the CEE countries. Less is More. Prague Economic Papers, 32(4), 350-366. doi: 10.18267/j.pep.834
Stáhnout citaci
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Zobrazit celý článek

    Reference

    1. Asteriou, D., Hall, S. (2011). Applied econometrics (2nd ed.). London: Palgrave Macmillan. ISBN 978-0-230-27182-1.
    2. Baltagi, B. H. (2008). Econometric Analysis of Panel Data (3rd ed.). Chichester: John Wiley & Sons Ltd. ISBN 978-0-470-01456-1. Přejít k původnímu zdroji...
    3. Berggren, N. (2003). The Benefits of Economic Freedom: A Survey. The Independent Review, 8(2), 193-211.
    4. Breusch, T. S., Pagan, A. R. (1979). A Simple Test for Heteroscedasticity and Random Coefficient Variation. Econometrica, 47(5), 1287-1294. http://doi.org/10.2307/1911963 Přejít k původnímu zdroji...
    5. Brkic, I., Gradojevic, N., Ignjatijevic, S. (2020). The Impact of Economic Freedom on Economic Growth? New European Dynamic Panel Evidence. Journal of Risk and Financial Management, 13(2), 26. http://doi.org/10.3390/jrfm13020026 Přejít k původnímu zdroji...
    6. Cebula, R. J., Clark, J. R., Mixon Jr., F. G. (2013). The Impact of Economic Freedom on Per Capita Real GDP: A Study of OECD Nations. The Journal of Regional Analysis &Policy, 43(1), 34-41. http://doi.org/10.22004/ag.econ.243946 Přejít k původnímu zdroji...
    7. Farkas, B. (2011). The Central and Eastern European Model of Capitalism. Post-Communist Economies, 23(1), 15-34. http://doi.org/10.1080/14631377.2011.546972 Přejít k původnímu zdroji...
    8. Graeff, P., Mehlkopb, G. (2003). The Impact of Economic Freedom on Corruption: Different Patterns for Rich and Poor Countries. European Journal of Political Economy, 19(3), 605-620. http://doi.org/10.1016/S0176-2680(03)00015-6 Přejít k původnímu zdroji...
    9. Gwartney, J., Lawson, R. (2003). The Concept and Measurement of Economic Freedom. European Journal of Political Economy, 19, 405-430. http://doi.org/10.1016/S0176-2680(03)00007-7 Přejít k původnímu zdroji...
    10. Hanousek, J., Kočenda, E. (2011). Public Investments and Fiscal Performance in the New EU Member States. Fiscal Studies, 32, 43-71. https://doi.org/10.1111/j.1475-5890.2011.00127.x Přejít k původnímu zdroji...
    11. Hausman, J. A. (1978). Specification Tests in Econometrics. Econometrica, 46(6), 1251-1271. http://dx.doi.org/10.2307/1913827 Přejít k původnímu zdroji...
    12. Kovačević, S., Borović, Z. (2014). Economic Freedom and Economic Performance in Former Socialist Countries - Panel Approach. Proceedings of the Faculty of Economics in East Sarajevo, 9, 19-26. https://doi.org/10.7251/ZREFIS1409019K Přejít k původnímu zdroji...
    13. Lundstrom, S. (2005). The Effect of Democracy on Different Categories of Economic Freedom. European Journal of Political Economy, 21(4), 967-980. https://doi.org/10.1016/j.ejpoleco.2004.11.005 Přejít k původnímu zdroji...
    14. Miller, T., Foster, J. D. (2012). Public Debt, Economic Freedom and Growth, in Miller, T., Holmes, K. R., Feulner, E. J., eds., 2012 Index of economic freedom. Washington DC: The Heritage Foundation, pp. 45-56.
    15. Miller, T., Kim, A., Holmes, K. (2014). 2014 Index of Economic Freedom. Washington DC: The Heritage Foundation and Dow Jones & Company. ISBN: 978-0-89195-285-5. Přejít k původnímu zdroji...
    16. Naanwaab, C., Diarrassouba, M. (2013). The Impact of Economic Freedom on Bilateral Trade: A Cross-Country Analysis. International Journal of Business and Economics Research, 4(1), 668-672.
    17. Reinhart, C., Reinhart, V., Rogoff, K. S. (2012). Government Debt Overhangs: Advanced-Economy Episodes since 1800. Journal of Economic Perspectives, 26(3). https://doi.org/10.1257/jep.26.3.69 Přejít k původnímu zdroji...
    18. Sayari, N., Sari, R., Hammoudeh, S. (2018). The Impact of Value Added Components of GDP and FDI on Economic Freedom in Europe. Economic Systems, 42(2), 282-294. https://doi.org/10.1016/j.ecosys.2017.03.003 Přejít k původnímu zdroji...
    19. Spyrakis, V., Kotsios, S. (2021). Public Debt Dynamics: the Interaction with National Income and Fiscal Policy. Journal of Economic Structures, 10(8), 1-22. https://doi.org/10.1186/s40008-021-00238-4 Přejít k původnímu zdroji...
    20. Treidler, O. (2014). Economic Freedom and Government Debt in Central and Eastern Europe, in Benczes, I., ed., Deficit and debt in transition. The political economy of government finances in Central and Eastern Europe. Budapest - New-York: Central European University Press, pp. 15-34. Přejít k původnímu zdroji...

    Tento článek je publikován v režimu tzv. otevřeného přístupu k vědeckým informacím (Open Access), který je distribuován pod licencí Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), která umožňuje nekomerční distribuci, reprodukci a změny, pokud je původní dílo řádně ocitováno. Není povolena distribuce, reprodukce nebo změna, která není v souladu s podmínkami této licence.


    Zpět na obsah