Public debt levels significantly impact GDP growth in post-socialist countries
Is it true that public debt levels significantly impact GDP growth in post-socialist countries?
Yes. Evidence from econometric studies in European and post-socialist/transition contexts demonstrates that public debt levels significantly impact and can hinder GDP growth when they exceed certain optimal thresholds.
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The claim specifically asserts that public debt levels significantly impact GDP growth in post-socialist countries. Papers [1] and [9] investigate the relationship between public debt and economic growth in EU and Central/Eastern European (post-socialist/transition) countries, finding statistically significant impacts (including negative effects past certain thresholds). No papers refute this specific relationship.
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Onofrei, M., Bostan, I., Firtescu, B. N., Roman, A., & Rusu, V. D. (2022). Public Debt and Economic Growth in EU Countries. doi.org. https://doi.org/10.3390/economies10100254
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Jusaj, Y. V., Avdimetaj, K., Zogaj, V., & Gara, A. (2025). The Impact of Public Debt Threshold on Economic Growth Before and After the COVID-19 Pandemic: An Empirical Analysis of Central and Eastern European Developing Countries. doi.org. https://doi.org/10.2478/jec-2025-0010
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