The Effect of Sovereign Debt on Economic Growth: The Case of Oil-Rich Countries
Abstract
Key studies have identified the need to study the role of sovereign debt on economic growth, particularly in relation to countries with heavily oil-based status economies. This paper applies a panel vector autoregressive approach to examine the impact of sovereign debt on economic prosperity in several oil-rich countries between 2002 and 2017. The results show that in oil countries, like other developing countries, government debt has not had a positive impact on enhancing economic growth, resulting in a reluctance of such countries to invest debts in production, and a desire for the type of diversification of sources of income observable in most advanced countries.Keywords: Co-integration, Sovereign Debt, Oil-rich CountriesJEL Classifications: A10, B22, B23, E23, E52, E62DOI: https://doi.org/10.32479/ijefi.9120Downloads
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Published
2020-03-16
How to Cite
Salameh, H., Alodadi, A., & Alzubi, K. (2020). The Effect of Sovereign Debt on Economic Growth: The Case of Oil-Rich Countries. International Journal of Economics and Financial Issues, 10(2), 262–267. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/9120
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