Exports and Government Debt - A Panel Data Analysis Worldwide
7 Pages Posted: 8 Mar 2012
Date Written: March 7, 2012
Abstract
If a country A with a low economic growth rate exports to another country B (and the second has larger real GDP growth rate than all the remaining countries during the same time period), that will help country A. Hence, the revenues from exports will enable country A to reduce its government debt and to gradually abandon own austerity measures. Consequently, domestic consumption in A will go up and economic growth will be triggered (according to consumption-led growth theory). This can apply to the case of Greece. Thus, Greek exports will help Greek economy to pay off debts and start its own economic growth. The sample covers all world. Data are taken from Eurostat. The elaboration of these panel data is made feasible by means of the Eviews software package.
Keywords: Economic Growth, Consumption, Exports, Government Debt, Austerity Measures, Econometric models with panel data (single equation)
JEL Classification: F43, E21, C23
Suggested Citation: Suggested Citation
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