The Determinants Of Public Debt

Ilhèm Gargouri
Majdi Ksantini
JEL codes: 
C23 - Models with Panel Data; Longitudinal Data; Spatial Time Series, F34 - International Lending and Debt Problems.
The study focuses on the identification of the Europeans public debt determinants. For this analysis, we have taken 12 Europeans countries during the 2000 - 2014 period. In order to estimate our model, we used the correlated panels corrected standard errors model. The results confirms the persistence of dependant variable i.e. debt-to-GDP ratio. We also found a positive impact of bank nonperforming loans, military expenditures and imports and a negative influence of GDP growth and bank liquid reserves.
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