Session

Management, Business and Economics

Description

This paper empirically investigates the long run relation between domestic and external general government debt and economic growth in North Macedonia. We analyze how the government debt at a certain point in time is correlated with the GDP growth rate. The study employs a regression model as well as ANOVA test in order to investigate the causal relationship between government debt and GDP growth rate using annual data for the time period 2005 – 2019. We find strong evidence for a significantly positive relation between domestic general government debt and growth and negative relation between external general government debt and growth.

Keywords:

domestic general government debt, external general government debt, economic growth

Session Chair

Arta Mulliqi

Session Co-Chair

Amir Imeri

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-437-96-7

First Page

55

Last Page

62

Location

Lipjan, Kosovo

Start Date

31-10-2020 1:30 PM

End Date

31-10-2020 3:00 PM

DOI

10.33107/ubt-ic.2020.313

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Oct 31st, 1:30 PM Oct 31st, 3:00 PM

The Relationship Between Government Debt and Economic Growth in North Macedonia

Lipjan, Kosovo

This paper empirically investigates the long run relation between domestic and external general government debt and economic growth in North Macedonia. We analyze how the government debt at a certain point in time is correlated with the GDP growth rate. The study employs a regression model as well as ANOVA test in order to investigate the causal relationship between government debt and GDP growth rate using annual data for the time period 2005 – 2019. We find strong evidence for a significantly positive relation between domestic general government debt and growth and negative relation between external general government debt and growth.