Public Debt and Economic Growth: Case of South American Nations
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Abstract
This paper aimed to study the relationship between public debt and economic growth in South American nations. To achieve the objective, a panel analysis was adopted. The results drawn from this study suggested that mean years of schooling as well as trade openness and investment have a positive impact on growth rates, whereas public debt is negatively related to economic growth. Not surprisingly, the corruption perception index has a positive relationship with growth. In other words, when a nation has a low prevalence of corruption, economic growth increases.
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References
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