39th IBIMA Business Conference 30-31 May 2022

30-31 May 2022

Paper Submission: CLOSED

U.S.A. ISBN: 978-0-9998551-8-8
U.S.A. Library of Congress:
ISSN: 2767-9640

The Impact of Public Debt on Economic Growth in European Union Countries

Alin-Vasile STRĂCHINARU

Abstract:

The paper analyzes the impact of economic growth on public debt in the Member States of the European Union, with an annual frequency, for the period 2005 - 2019. The aim is to capture the influence of public debt on economic growth, using Vector Autoregression Model.

The results of the study show a causal relationship between them, with an inertia in both the evolution of public debt and economic growth, reflected in an inversely proportional relationship.