Version 1
: Received: 11 September 2020 / Approved: 13 September 2020 / Online: 13 September 2020 (12:09:52 CEST)
How to cite:
Anyanwu, A. A. Debt-Financed Public Investment in Developing Countries: Does the Efficiency of Public Investment Matter?. Preprints2020, 2020090284. https://doi.org/10.20944/preprints202009.0284.v1
Anyanwu, A. A. Debt-Financed Public Investment in Developing Countries: Does the Efficiency of Public Investment Matter?. Preprints 2020, 2020090284. https://doi.org/10.20944/preprints202009.0284.v1
Anyanwu, A. A. Debt-Financed Public Investment in Developing Countries: Does the Efficiency of Public Investment Matter?. Preprints2020, 2020090284. https://doi.org/10.20944/preprints202009.0284.v1
APA Style
Anyanwu, A. A. (2020). Debt-Financed Public Investment in Developing Countries: Does the Efficiency of Public Investment Matter?. Preprints. https://doi.org/10.20944/preprints202009.0284.v1
Chicago/Turabian Style
Anyanwu, A. A. 2020 "Debt-Financed Public Investment in Developing Countries: Does the Efficiency of Public Investment Matter?" Preprints. https://doi.org/10.20944/preprints202009.0284.v1
Abstract
This study examines whether government spending efficiency is associated with differential effects of public investment on debt-to-GDP ratio for a panel data consisting of 16 developing countries in Asia-Pacific region over the period 2007-2017. Public investment is central to implementing the UN 2030 Agenda for Sustainable Development — but high debt-to-GDP ratio poses a key risk. The empirical results indicate that public investment efficiency moderates debt-to-GDP ratio whereas public investment in the midst of public sector corruption accentuates debt-to-GDP ratio. The results have important policy implications.
Keywords
public debt; government spending efficiency; public investment; public sector corruption
Subject
Business, Economics and Management, Economics
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.