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EVALUATING THE SUSTAINABILITY OF PUBLIC DEBT IN THE PRESENCE OF CURRENT AND FISCAL ACCOUNTS DEFICIT IN DEVELOPING COUNTRIES

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58 Pages : 572-585

http://dx.doi.org/10.31703/gssr.2020(V-I).58      10.31703/gssr.2020(V-I).58      Published : Mar 1

Evaluating the Sustainability of Public Debt in the Presence of Current and Fiscal Accounts Deficit in Developing Countries

Abstract

    We estimate the public debt sustainability for 53 developing countries divided into different regions using data from 1996 to 2017. Sustainability of public debt calculation is based on theoretically derived models with necessary and sufficient conditions. Current study empirically validates the importance of least evident saving-investment gap along with other variables in public debt sustainability issue. Findings show that current account, fiscal account and saving-investment gap imbalances cause unsustainable public debt for all different regions which is a matter of great concern for each region. Policy makers of the developing countries must bring policies to promote investment activities backed by saving not by debt.

    Debt Sustainability, Current Account, Fiscal Account, Saving Investment Gap, Developing Countries.

    (1) Ayaz Khan
    PhD scholar, Department of Economics, Abdul Wali Khan University Mardan, KP, Pakistan.
    (2) Zahoor Ul Haq
    Professor, Department of Economics, Pakhtunkhwa Economic Policy Research Institute, Abdul Wali Khan University Mardan, KP, Pakistan.
    (3) Javed Iqbal
    Assistant Professor, Department of Economics, Pakhtunkhwa Economic Policy Research Institute, Abdul Wali Khan University Mardan, KP, Pakistan.
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Cite this article

APA

    APA : Khan, A., Haq, Z. U., & Iqbal, J. (2020). Evaluating the Sustainability of Public Debt in the Presence of Current and Fiscal Accounts Deficit in Developing Countries. Global Social Sciences Review, V(I), 572-585. https://doi.org/10.31703/gssr.2020(V-I).58

CHICAGO

    CHICAGO : Khan, Ayaz, Zahoor Ul Haq, and Javed Iqbal. 2020. "Evaluating the Sustainability of Public Debt in the Presence of Current and Fiscal Accounts Deficit in Developing Countries." Global Social Sciences Review, V (I): 572-585 doi: 10.31703/gssr.2020(V-I).58

HARVARD

    HARVARD : KHAN, A., HAQ, Z. U. & IQBAL, J. 2020. Evaluating the Sustainability of Public Debt in the Presence of Current and Fiscal Accounts Deficit in Developing Countries. Global Social Sciences Review, V, 572-585.

MHRA

    MHRA : Khan, Ayaz, Zahoor Ul Haq, and Javed Iqbal. 2020. "Evaluating the Sustainability of Public Debt in the Presence of Current and Fiscal Accounts Deficit in Developing Countries." Global Social Sciences Review, V: 572-585

MLA

    MLA : Khan, Ayaz, Zahoor Ul Haq, and Javed Iqbal. "Evaluating the Sustainability of Public Debt in the Presence of Current and Fiscal Accounts Deficit in Developing Countries." Global Social Sciences Review, V.I (2020): 572-585 Print.

OXFORD

    OXFORD : Khan, Ayaz, Haq, Zahoor Ul, and Iqbal, Javed (2020), "Evaluating the Sustainability of Public Debt in the Presence of Current and Fiscal Accounts Deficit in Developing Countries", Global Social Sciences Review, V (I), 572-585

TURABIAN

    TURABIAN : Khan, Ayaz, Zahoor Ul Haq, and Javed Iqbal. "Evaluating the Sustainability of Public Debt in the Presence of Current and Fiscal Accounts Deficit in Developing Countries." Global Social Sciences Review V, no. I (2020): 572-585. https://doi.org/10.31703/gssr.2020(V-I).58