•Examine the link between fiscal decentralization and technological innovation.•Fiscal decentralization has a positive relationship with technological innovation.•R&D and economic globalization ...promote technological innovation.•Public debt is negatively associated with technological innovation.•Bidirectional causality exists among technological innovation and its indicators.
In the past, economic models and empirical evidence have extensively examined the possible determinants of technological innovation. However, researchers did not give much importance to the relationship between fiscal decentralization and technological innovation. Therefore, this study examines the effects of fiscal decentralization on technological innovation, in the presence of economic globalization, public debt, and research & development expenditures (R&DE) for seven decentralized countries of the world, which include Brazil, South Africa, Canada, Germany, Japan, UK, and the USA. In this regard, the Westerlund and Kao cointegration methods' outcomes have provided ample evidence of a long-run equilibrium relationship among the variables associated with technological innovation and its determinants. The results of the common correlated effects mean group (CCEMG) support the hypothesized relationship between fiscal decentralization, and other technological innovation variables that have been taken into consideration. It is evident that an increase in fiscal decentralization, economic globalization, and R&D expenditures tends to improve the sample countries' performance in terms of innovation. On the contrary, public debt is negatively associated with technological innovation. By employing the Dumitrescu Hurlin test, we also found that any policy aims to target fiscal decentralization, R&D expenditures, and public debt significantly changes the advent of technological innovation.
Introducing uncertainty under fiscal sustainability conditions for the public debt provides a framework for analyzing debt dynamics. Such methods are commonly used for fiscal projections, but our aim ...here is retrospective; we evaluate the sudden jump in the Hungarian public debt following the global financial crisis in 2008. Based on a traditional debt-deficit stock-flow identity combining the fiscal component (primary deficit) and the interactions among real sector components, we model the debt dynamics by a vector error correction model (VECM). Uncertainty is represented in the model by shocks that are identified in the VECM framework. Using this method for simulation starting from 2006, we found that the debt-to-GDP ratio in 2008 and after could not be ruled out by 90 percent probability. Such an event was coded in the Hungarian debt dynamics and very likely would have materialized even without the unfortunate events of the global financial crisis.
This research paper focuses on the relationship between public debt and the economy in the Republic of North Macedonia. Debt size has become a crucial indicator for monitoring the health of ...economies, and North Macedonia’s economy is often reliant on borrowing. The COVID-19 crisis exacerbated the country’s already high level of debt, limiting budget response options. The effectiveness of implemented measures to mitigate the crisis depends on their adaptation to specific conditions. To assess the sustainability of public debt, the study uses ordinary least squares (OLS) and multivariate regression analysis, providing an empirical evaluation of North Macedonia’s public debt sustainability by using data from the Ministry of Finance. The main findings of the paper reveal insights into the sustainability of public debt and the impact of fiscal policies on economic stability. The study highlights the importance of careful debt management and the need for fiscal policies that strike a balance between supporting economic growth and maintaining budget sustainability. The empirical analysis and methodology employed in the study offer valuable insights for policymakers and researchers, aiding in the formulation of effective fiscal policies. Research has its limitations on the usage of the quartile data for earlier periods — transition periods that were not available.
Public debt plays a crucial role in the economic development of many countries, the effective management and servicing of the external public debt have become a priority in the financial and economic ...policy of the state, ensuring the stability of its development. The article aims to develop Ukraine’s external public debt management system during the wartime. As a result of the analysis, the key negative consequences of the impact of external debt growth on Ukraine`s economic security were determined, i.e. economic growth slowdown, increased dependence on creditors, increased costs of the public debt servicing, significant reduction in domestic consumption, etc. The developed external public debt management system in the framework of state economic and financial security includes relevant subsystems, principles, functions, objects and subjects, methods. It was substantiated that the appropriate external public debt management system during wartime in Ukraine requires the following additional subsystems: subsystem of crisis planning and response, subsystem of external debt settlement and subsystem for ensuring international cooperation.
HOW WILL CAPITALISM END? Streeck, Wolfgang
New Left review,
05/2014, Volume:
87, Issue:
87
Journal Article
Peer reviewed
There is a widespread sense today that capitalism is in critical condition, more so than at any time since the end of the Second World War. Looking back, the crash of 2008 was only the latest in a ...long sequence of political and economic disorders that began with the end of postwar prosperity in the mid-1970s. Successive crises have proved to be ever more severe, spreading more widely and rapidly through an increasingly interconnected global economy. Global inflation in the 1970s was followed by rising public debt in the 1980s, and fiscal consolidation in the 1990s was accompanied by a steep increase in private-sector indebtedness. For four decades now, disequilibrium has more or less been the normal condition of the 'advanced' industrial world, at both the national and the global levels. In fact, with time, the crises of postwar OECD capitalism have become so pervasive that they have increasingly been perceived as more than just economic in nature, resulting in a rediscovery of the older notion of a capitalist society-of capitalism as a social order and way of life, vitally dependent on the uninterrupted progress of private capital accumulation. Adapted from the source document.
This article aims to highlight how important it is to analyze and effectively manage a state's public debt in order to maintain a stable macroeconomic situation. In this sense, we made an analysis of ...the main indicators of public debt. During the period 2015-2020, the level of indebtedness in relation to economic activity decreased, with the exception of 2020, which, under the impact of the Covid-19 pandemic, shows an increase in public debt. A thorough research of the public debt is needed in the the current context of the Covid-19 pandemic. Among the analyzed indicators we can mentione: public debt per capita in lei and in euro, public debt related to GDP and exports of goods and services, government public debt service.
The article is devoted to the study of the state of the state debt and the state of Ukraine’s debt policy. The relevance of this topic is that during the previous years, the public debt of Ukraine, ...both external and internal, was constantly growing, creating threats to the country’s debt security and financial stability. Over the last decade, the problem of the growth of Ukraine’s foreign debt continues to worsen. Attracting loan capital is caused by the need to replenish currency reserves in order to increase the resources of the country’s economic development and ensure the stability of the national currency. The purpose of the study is a theoretical generalization of the prerequisites and features of the formation of the national debt of Ukraine and the justification of the policy of management and service of the external debt, which will contribute to ensuring the financial security and economic development of the country. In accordance with the set goal, the work is supposed to solve a number of problems, the main of which are: clarifying the impact of foreign debt on the financial security of the state; clarification of the relationship between the financial and economic development of the state and the state debt; assessment of the state debt of Ukraine and the state of its financial security; development of proposals for improving the management and servicing of public debt in Ukraine. To achieve the goal, the following scientific methods were used in the scientific research: analysis and generalization - to study the current state of debt security in Ukraine; comparison and compilation - for the analysis of world and national experience in calculating the system of indicators of financial security; grouping – for clustering of relevant indicators of the impact of debt on financial security; statistical analysis – to study the dynamics of debt security indicators and calculate an integral index based on them. These methods make it possible to single out the challenges and prospects of the Ukrainian economy on the way to achieving the optimal level of the country’s foreign debt. The structure of the state debt of Ukraine and its optimal limits have been determined. An analysis of the current state and main trends of the state debt of Ukraine was carried out. In particular, the trends of its share in GDP were determined, a thorough structural analysis of the national debt of Ukraine was carried out for the period from 01.01.2013 to 01.01.2022, and an assessment of budget costs for servicing and repayment of the national debt of Ukraine was carried out. An analysis of the state and structure of the state debt of Ukraine makes it possible to identify trends in its volume growth. During the analyzed period, the size of the national debt of Ukraine changed rapidly, which is determined by general factors of economic development. The authors found that in the structure of the state debt, there is a clear tendency towards the predominance of external debt over internal debt. The main causes of the state debt are the state budget deficit and significant amounts of internal and external borrowing. Further growth of the national debt of Ukraine is very dangerous and may lead to the loss of economic independence, the withdrawal of funds from the financial market that could be used for the development of the real sector of the economy, a decrease in competitiveness on domestic and foreign markets, and a decline in the standard of living of the country’s population. But reaching the projected level threatens Ukraine with default. In order to avoid negative consequences, it is proposed to improve the mechanism of public debt management at the institutional level, to improve the legal framework, and also to increase the level of own gross domestic product by modernizing domestic enterprises.
This study undertakes a comprehensive bibliometric analysis of publications pertaining to the external public debt management system. The paper aims to study the evolution of scholarly discourse ...surrounding the external public debt management domain, highlighting contributions, methodologies, and collaborative networks within the field. The methodology encompasses a multivariate approach, incorporating extensive searches across the three major scientometric databases: Google Scholar (PoP), Scopus (in-built Scopus tools, SciVal), and Web of Science (in-built WoS instruments). The bibliometric analysis extends to contextual, evolutionary, and spatial dimensions, allowing for a comprehensive understanding of the identified clusters. The ensuing clusters serve as a roadmap, categorizing publications based on their contextual relevance, evolutionary trajectory, and spatial focus, which enhances the identification of key works in the field, facilitating a nuanced understanding of the current state of external public debt management research. The synthesis of findings from the content-contextual block emphasizes a primary orientation toward understanding the dynamic interplay between external public debt management and economic development. Furthermore, the contextual-temporal block identifies four distinct stages in the evolution of research focus, highlighting the shifting emphasis over time. A discernible pattern of heightened research activity in external public debt management across various countries in recent decades is revealed through spatiotemporal analysis. The interdisciplinary nature of this field is underscored by the dominance of economics, econometrics, finance, business, management, and accounting in dedicated research.
The purpose of the present research is to present the situation of Romania from the point of view of the government debt determined according to the methodology of the European Union, as well as the ...positioning of Romania, within the European Union from the point of view of the mentioned indicator. The research carried out highlighted the effects of the COVID-19 pandemic on the government debt, but also the opinions of financial specialists who mention that a responsible fiscal-budgetary policy could lead to the relaunch of the economy in Romania against the background of the pandemic crisis. The resources borrowed and remaining to be repaid at a given time, at the level of any state, constitute an additional argument that justifies the topicality and importance of the research topic. The main objective of the research theme was to present the effects of COVID-19 on Romania's government debt.
Many economies abundant in natural resources often leverage the rents from these resources as collateral for borrowing during periods of economic boom, intending to repay debts during periods of ...windfall. However, this practice can cultivate irresponsible borrowing tendencies, potentially leading to debt trap scenarios when global resource prices decline. Thus, our study delves into the interaction between public debt (PD) and total natural resource rents (TNR), examining both aggregate and disaggregate forms, with a specific focus on India spanning from 1980-81 to 2021–22.
Our aggregate analysis reveals that PD exhibits heightened responsiveness to negative shocks in TNR compared to positive shocks, indicating an asymmetric impact of TNR on PD within the Indian context. Additionally, disaggregate analysis uncovers that both positive and negative shocks in coal rents (CR), natural gas rents (NGR), and forest rents (FR) significantly and adversely affect PD. Furthermore, a positive shock in mineral rents (MR) demonstrates a negative and significant impact on PD, while a negative shock in MR yields a positive but insignificant impact on PD. Overall, barring oil rents (OR), other forms of resource rents such as CR, NGR, FR, and MR showcase asymmetric and negative effects on PD. These findings underscore the importance of prudent institutional behavior and sound economic policies in overseeing and managing debt sustainability in resource-rich economies.
•The effects of natural resources rents shock on India’s public debt is analysed in aggregate and disaggregate form.•Symmetric and asymmetric ARDL models are used.•In aggregate analysis, natural resources rents have asymmetric and negative impact on public debt.•In disaggregate analysis, coal rent, natural gas rent, forest rent, and mineral rent have asymmetric and negative impact on public debt.•Oil rent does not exert any significant impact on PD.•Prudent institutional behaviour and economic policies are necessary for debt sustainability.
