Merkezi hükümet borcu ve ekonomik büyüme: 94 ülkeden kanıt

This thesis analyzes the nature of the relationship between the central government debt and GDP per capita growth. I find an evidence for negative linear effect of public debt on economic growth. It is consistent with the other studies since high public debt decreases savings and investments which hinder the economic growth. Furthermore, I identify a structural break in the function that links public debt to economic growth. Since governments can benefit from low levels of public debt or low levels of debt might not have a considerable effect on growth, its initial effect is different on growth when compared to the high levels of public debt. I estimate the threshold level of public debt such that its effect on growth becomes negative when public debt level exceeds the threshold.