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Status: Unchecked ×Keyword: Latin America and the Caribbean ×Clear all

2 claims from 1 paper

1. Economics, Econometrics and Finance › Fiscal Policies and Political Economy

   Government Debt and Economic Growth

   Calderón and Fuentes · 2013

   The study tests whether public debt hinders growth and whether good policy softens the effect, then applies the results to Latin America and the Caribbean.

   Unchecked2 claims
   Show 2 claims

   1. UncheckedUsing data for many countries from 1970 to 2010, the paper reports that higher public debt has a negative and robust effect on economic growth.“A large panel data of countries for 1970-2010 reveal a negative and robust effect of public debt on growth.”
   2. UncheckedThe paper estimates that sharply cutting public debt while improving policies would raise per capita growth by 1.7 points in the Caribbean and 2 in South America.“A simultaneous sharp reduction in public debt and an improvement in the policy environment induce an increase in the growth rate per capita of 1.7 percentage points for the Caribbean and 2 percentage points for South America.”