Table 6. Public debt and economic...

Table 6.

Public debt and economic growth; BSLPSTR, African and European countries

	Newly democratic African countries (NDAC)				Newly democratic European countries (NDEC)
	Model 1: prudential policy regime		Model 2: nonprudential policy regime		Model 3: prudential policy regime		Model 4: nonprudential policy regime
	LR β₀_j × 100	HR (β₀_j + β₁_j) × 100	LR β₀_j × 100	HR (β₀_j + β₁_j) × 100	LR β₀_j × 100	HR (β₀_j + β₁_j) × 100	LR β₀_j × 100	HR (β₀_j + β₁_j) × 100
PUCDT	6.07 ** (2.00)	−8.87** (3.98)	−2.20** (0.89)	3.12 ** (0.30)	4.30 ** (0.50)	–6.79 (1.11)	–3.03 ** (1.40)	5.90 *** (1.50)
IMFIN	–2.40 ** (0.79)	−1.78** (0.12)			2.40 ** (1.00)	3.59 ** (1.40)
IMFDTI	–2.50 ** (0.20)	–3.90 ** (1.10)			4.70 ** (1.24)	2.34 ** (0.90)
TRP	3.20 ** (1.38)	2.10 ** (0.99)	5.30 ** (2.22)	3.10 ** (1.44)	2.00 ** (0.90)	2.36 ** (0.80)	4.70 ** (1.29)	2.70 ** (0.70)
INFL	–3.53 ** (1.13)	–2.0*** (0.70)	–2.33 *** (0.50)	−2.00 *** (0.44)	−1.60 ** (0.20)	2.50 ** (0.99)	2.44 * (0.49)	1.50 ** (0.50)
GEXP	4.89 *** (2.20)	–2.00 ** (0.88)	1.44 ** (0.50)	–3.35 ** (1.77)	3.88** (1.28)	2.05 ** (0.67)	2.65 ** (0.99)	3.99 ** (1.30)
EMSS	3.47 ** (1.76)	2.98** (0.60)	2.56 (0.90)**	3.01 *** (2.00)	2.23** (0.10)	2.70 (0.43)***	3.22 ** (0.23)	1.89 ** (0.25)
TRM	2.07 ** (0.39)	3.41** (0.38)	2.11** (0.48)	1.35 *** (0.69)	3.76** (1.70)	1.80 ** (0.38)	1.91 ** (0.22)	−3.91 ** (1.23)
PG	–2.05** (0.49)	–1.89** (0.89)	–1.89** (0.89)	–3.12** (1.99)	1.44** (0.10)	–2.98** (0.20)	3.60** (1.66)	1.00** (0.03)
Dum	Yes	No	No	No	Yes	No	No	No

	Newly democratic African countries (NDAC)				Newly democratic European countries (NDEC)
	Model 1: prudential policy regime		Model 2: nonprudential policy regime		Model 3: prudential policy regime		Model 4: nonprudential policy regime
	LR β₀_j × 100	HR (β₀_j + β₁_j) × 100	LR β₀_j × 100	HR (β₀_j + β₁_j) × 100	LR β₀_j × 100	HR (β₀_j + β₁_j) × 100	LR β₀_j × 100	HR (β₀_j + β₁_j) × 100
PUCDT	6.07 ** (2.00)	−8.87** (3.98)	−2.20** (0.89)	3.12 ** (0.30)	4.30 ** (0.50)	–6.79 (1.11)	–3.03 ** (1.40)	5.90 *** (1.50)
IMFIN	–2.40 ** (0.79)	−1.78** (0.12)			2.40 ** (1.00)	3.59 ** (1.40)
IMFDTI	–2.50 ** (0.20)	–3.90 ** (1.10)			4.70 ** (1.24)	2.34 ** (0.90)
TRP	3.20 ** (1.38)	2.10 ** (0.99)	5.30 ** (2.22)	3.10 ** (1.44)	2.00 ** (0.90)	2.36 ** (0.80)	4.70 ** (1.29)	2.70 ** (0.70)
INFL	–3.53 ** (1.13)	–2.0*** (0.70)	–2.33 *** (0.50)	−2.00 *** (0.44)	−1.60 ** (0.20)	2.50 ** (0.99)	2.44 * (0.49)	1.50 ** (0.50)
GEXP	4.89 *** (2.20)	–2.00 ** (0.88)	1.44 ** (0.50)	–3.35 ** (1.77)	3.88** (1.28)	2.05 ** (0.67)	2.65 ** (0.99)	3.99 ** (1.30)
EMSS	3.47 ** (1.76)	2.98** (0.60)	2.56 (0.90)**	3.01 *** (2.00)	2.23** (0.10)	2.70 (0.43)***	3.22 ** (0.23)	1.89 ** (0.25)
TRM	2.07 ** (0.39)	3.41** (0.38)	2.11** (0.48)	1.35 *** (0.69)	3.76** (1.70)	1.80 ** (0.38)	1.91 ** (0.22)	−3.91 ** (1.23)
PG	–2.05** (0.49)	–1.89** (0.89)	–1.89** (0.89)	–3.12** (1.99)	1.44** (0.10)	–2.98** (0.20)	3.60** (1.66)	1.00** (0.03)
Dum	Yes	No	No	No	Yes	No	No	No

Notes:

Dependent variable is the Growth. The numbers in brackets denote the standard errors in brackets are obtained by using the cluster-robust and heteroskedasticity-consistent covariance estimator, allowing for error dependency within individual countries.

***, **, *Reflect the 1, 5, 10% level of significance, respectively. The pv are the p-values, LR and HR stand for lower regime and high regime, respectively

Source: Author’s calculation results based on data from WDI, 2023

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