Next Article in Journal
A Model for Assessing Pedestrian Corridors. Application to Vitoria-Gasteiz City (Spain)
Next Article in Special Issue
Policy Analysis to Reduce Climate Change-Induced Risks in Urban and Rural Areas in Korea
Previous Article in Journal
Promoting Sustainability Transparency in European Local Governments: An Empirical Analysis Based on Administrative Cultures
Previous Article in Special Issue
Empirical Relationships among Technological Characteristics, Global Orientation, and Internationalisation of South Korean New Ventures
Open AccessArticle

Public Debt, Corruption and Sustainable Economic Growth

1
Gender Budget Research Center, Korea Women’s Development Institute, Seoul 03367, Korea
2
Graduate School of Energy and Environment, Korea University, Seoul 02841, Korea
3
Graduate School of Public Administration and the Korea Institute of Public Affairs, Seoul National University, Seoul 08826, Korea
*
Author to whom correspondence should be addressed.
Sustainability 2017, 9(3), 433; https://doi.org/10.3390/su9030433
Received: 13 December 2016 / Revised: 20 February 2017 / Accepted: 23 February 2017 / Published: 15 March 2017
There are many studies that look into the relationship between public debt and economic growth. It is hard to find, however, research addressing the role of corruption between these two variables. Noticing this vacancy in current literature, we strive to investigate the effect of corruption on the relationship between public debt and economic growth. For this purpose, the pooled ordinary least squares (OLS), fixed effects models and the dynamic panel generalized method of moments (GMM) models (Arellano-Bond, 1991) are estimated with data of 77 countries from 1990 to 2014. The empirical results show that the interaction term between public debt and corruption is statistically significant. This confirms the hypothesis that the effect of public debt on economic growth is a function of corruption. The sign of the marginal effect is negative in corrupt countries, but public debt enhances economic growth within countries that are not corrupt, i.e., highly transparent. View Full-Text
Keywords: public debt; economic growth; corruption; institution public debt; economic growth; corruption; institution
Show Figures

Figure 1

MDPI and ACS Style

Kim, E.; Ha, Y.; Kim, S. Public Debt, Corruption and Sustainable Economic Growth. Sustainability 2017, 9, 433. https://doi.org/10.3390/su9030433

AMA Style

Kim E, Ha Y, Kim S. Public Debt, Corruption and Sustainable Economic Growth. Sustainability. 2017; 9(3):433. https://doi.org/10.3390/su9030433

Chicago/Turabian Style

Kim, Eunji; Ha, Yoonhee; Kim, Sangheon. 2017. "Public Debt, Corruption and Sustainable Economic Growth" Sustainability 9, no. 3: 433. https://doi.org/10.3390/su9030433

Find Other Styles
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Search more from Scilit
 
Search
Back to TopTop