Have a personal or library account? Click to login
The Debt-Growth Relationship in the Western Balkans, Developing Europe, and the Eurozone Economies: Testing for the Existence of a Tipping Point Cover

The Debt-Growth Relationship in the Western Balkans, Developing Europe, and the Eurozone Economies: Testing for the Existence of a Tipping Point

By: Hajdar Korbi and  Avdullah Hoti  
Open Access
|Dec 2025

References

  1. Augustine, B., and O. P. C. Muhammed Rafi. 2023. Public Debt–Economic Growth Nexus in Emerging and Developing Economies: Exploring Nonlinearity. Finance Research Letters 52: 103540.
  2. Barro, R. J. 1974. Are Government Bonds Net Wealth? Journal of Political Economy 82 (6): 1095–1117.
  3. Barro, R. J. 1979. On the Determination of the Public Debt. Journal of Political Economy 87 (5, part 1): 940–71.
  4. Barro, R. J. 1990. Government Spending in a Simple Model of Endogenous Growth. Journal of Political Economy 98 (S5): 103–25.
  5. Barro, R. J. 1991. Economic Growth in a Cross Section of Countries. The Quarterly Journal of Economics 106 (2): 407–43.
  6. Baum, A., C. Checherita-Westphal, and P. Rother. 2012. Debt and Growth: New Evidence for the Euro Area. ECB Working Paper No. 1450. Frankfurt am Main: European Central Bank.
  7. Caner, M. and B. E. Hansen. 2004. Instrumental Variable Estimation of a Threshold Model. Econometric Theory 20 (5): 813–43.
  8. Caner, M., T. Grennes, and F. Koehler-Geib. 2010. Finding the Tipping Point—When Sovereign Debt Turns Bad. Policy Research Working Paper 5391. Washington, DC: World Bank.
  9. Chen, C., T. Stengos, and J. Zhang. 2024. Public Debt and Economic Growth: A Panel Kink Regression Latent Group Structures Approach. Econometrics 12 (1): 7.
  10. Chudik, A., K. Mohaddes, M. H. Pesaran, and M. Raissi. 2015. Is There a Debt-Threshold Effect on Output Growth? IMF Working Paper WP/15/197. Washington, DC: International Monetary Fund.
  11. Diamond, P. A. 1965. National Debt in a Neoclassical Growth Model. American Economic Review 55 (5): 1126–50.
  12. Eberhardt, M. and A. F. Presbitero. 2015. Public Debt and Growth: Heterogeneity and Non-linearity. Journal of International Economics 97 (1): 45–58.
  13. Égert, B. 2015. Public Debt, Economic Growth and Nonlinear Effects: Myth or Reality? Journal of Macroeconomics 43: 226–38.
  14. Feldstein, M. 1982. Government Deficits and Aggregate Demand. Journal of Monetary Economics 9 (1): 1–20.
  15. Fischer, S. 1993. The Role of Macroeconomic Factors in Growth. Journal of Monetary Economics 32 (3): 485–512.
  16. Hansen, B. E. 1996. Inference When a Nuisance Parameter Is Not Identified under the Null Hypothesis. Econometrica 64 (2): 413–30.
  17. Hansen, B. E. 2000. Sample Splitting and Threshold Estimation. Econometrica 68 (3): 575–603.
  18. Heimberger, P. 2023. Do Higher Public Debt Levels Reduce Economic Growth? A Meta-analysis. Journal of Economic Surveys 37 (2): 285–322.
  19. Herndon, T., M. Ash, and R. Pollin. 2013. Does High Public Debt Consistently Stifle Economic Growth? A Critique of Reinhart and Rogoff. PERI Working Paper No. 322. Amherst, MA: Political Economy Research Institute, University of Massachusetts Amherst.
  20. Hofmann, B., M. J. Lombardi, B. Mojon, and A. Orphanides. 2021. Fiscal and Monetary Policy Interactions in a Low Interest Rate World. BIS Working Paper No. 954. Basel: Bank for International Settlements.
  21. Hurić-Bjelan, J. and A. Hadžiahmetović. 2020. External Debt in Bosnia and Herzegovina—An Empirical Analysis. South East European Journal of Economics and Business 15 (2): 70–82.
  22. Karadam, D. Y. 2018. An Investigation of Nonlinear Effects of Debt on Growth. Journal of Economic Asymmetries 18: 1–13.
  23. Kitutila, Y. W. 2024. Estimation of the Public Debt Threshold Effects on Economic Growth in Sub-Saharan African Countries. African Development Review 36 (3): 377–90.
  24. Kose, M. A., F. Ohnsorge, and N. Sugawara. 2020. Benefits and Costs of Debt: The Dose Makes the Poison. Policy Research Working Paper 9166. Washington, DC: World Bank.
  25. Kose, M. A., P. Nagle, F. Ohnsorge, and N. Sugawara. 2020. Global Waves of Debt: Causes and Consequences. Washington, DC: World Bank.
  26. Kumar, M. S. and J. Woo. 2010. Public Debt and Growth. IMF Working Paper No. 10/174. Washington, DC: International Monetary Fund.
  27. Mencinger, J., A. Aristovnik, and M. Verbič. 2014. The Impact of Growing Public Debt on Economic Growth in the European Union. Amfiteatru Economic Journal 16 (35): 403–14.
  28. Mendonça, H. F. de and Y. Brito. 2021. The Link between Public Debt and Investment: An Empirical Assessment from Emerging Markets. Applied Economics 53 (50): 5864–76.
  29. Modigliani, F. 1961. Long-run Implications of Alternative Fiscal Policies and the Burden of the National Debt. The Economic Journal 71 (284): 730–55.
  30. Pattillo, C., H. Poirson, and L. Ricci. 2002. External Debt and Growth. IMF Working Paper WP/02/69. Washington, DC: International Monetary Fund.
  31. Pattillo, C., H. Poirson, and L. Ricci. 2004. What Are the Channels Through Which External Debt Affects Growth? IMF Working Paper WP/04/15. Washington, DC: International Monetary Fund.
  32. Reinhart, C. M. and K. S. Rogoff. 2010. Growth in a Time of Debt. American Economic Review 100 (2): 573-78.
  33. Romer, P. M. 1986. Increasing Returns and Long-run Growth. Journal of Political Economy 94 (5): 1002-37.
  34. Zanna, L.-F., E. F. Buffie, R. Portillo, A. Berg, and C. Pattillo. 2019. Borrowing for Growth: Big Pushes and Debt Sustainability in Low-Income Countries. The World Bank Economic Review 33 (3): 661-89.
Language: English
Page range: 149 - 164
Published on: Dec 31, 2025
Published by: University of Sarajevo
In partnership with: Paradigm Publishing Services
Publication frequency: 2 issues per year

© 2025 Hajdar Korbi, Avdullah Hoti, published by University of Sarajevo
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.