Debt, Growth, and Governance

Is there a relationship between public debt and economic growth via governance channels?  Evidently so.  Using the World Bank’s WGI dataset of 106 countries from 1996-2015, along with our ICRG data for robustness checking, a recent study found that “[a]lthough, public debt has negative impact on economic growth…the results are statistically positive and significant when public debt is interacted with governance, which confirms that governance is a channel by which public debt influences economic growth.”

For a closer look, cf:  https://lnkd.in/gxveVSqB

 

For over 40 years, the PRS Group and the International Country Risk Guide (ICRG) have been the go-to choice for a range of organizations, from investment firms to multilateral entities; from central banks to leading universities.  Independently back-tested since the 1990s, appearing regularly in the scholarly and trade journals.  “The most authoritative source of political risk data” found anywhere.

Ask us about our special promotion offers throughout the month of August by contacting: custserve@prsgroup.com

 

 

PRS INSIGHTS

Moving beyond current opinions, a seasoned look into the most pressing issues affecting geopolitical risk today.

EXPLORE INSIGHTS

Interested in More Information?

The form is loading