https://www.akademienunion.de/fileadmin/redaktion/user_upload/Publikationen/Stellungnahmen/3Akad_Bericht_Staatsschulden2015_EN_web.pdf

The general view of this economic development problem can be complemented by the Maurice Allais statement https://en.wikipedia.org/wiki/Debt_of_developing_countries on 'public' counterfeiting and who (private) benefits (citation 5). The Phillips paper http://www.levyinstitute.org/pubs/wp/76.pdf opens up new vistas, with reference to the financial depth of the economic problem. Here, we slowly arrive at the technical distinction between money and credit as elaborated by I.Fisher (1933).

https://en.wikipedia.org/wiki/Chicago_plan

I think that for the government debt in developing countries the main role is played by the loans from IFO. For example, practically the most of the developing countries owe or used to owe to IMF (Ukraine, Argentina etc.). But it's just one of the variables which affect the government debt

Thank you so much for your reply Mr. Stephen I. Ternyik and Mr. Vitalii Nitsenko

The experience showed two problems: a) high global interest rates; and b) high level of domestic inflation.

Yo incluiría también como variables el puesto del país en las relaciones de corrupción y la riqueza en recursos naturales.

export and import, debt repayment as share of GDP, ration between long term and short term debts

Hello Ms. Zarkova, more details on your issue of the factors affecting public debt can be found here: Book Debt Management

Creo que las variables que deben tomarse en consideración son: estructura de mercado interno débil, bajo poder adquisitivo de la población, tasas de interés altas, dependencia de su comercio con el exterior, y no sé si pueda considerar una variable pero la corrupción desvía fondos.

Thank you for your replies Roberto - Minadeo Anselmo Carretero Gómez Eberhard Weber Petko Angelov Dulce Ma. Cinta

First we should distinguish between Market Access Countries (MAC) and Low Income Countries (LIC). Because this distinction will decide about the interest rate to apply on the government debt, the concessionality, the life of the debt.

Also, we should think about the composition of the GDP in the country.

Then, compare the level of the debt with the level of tax revenues and also exports.

Thank you for the answer Mr. Hassane Eddassi. I think that these are important variables!

One of the most important factors is the lack of use of debt in development projects in developing countries with accumulated corruption, which affects the inability of these countries to repay the debt and weaken the strength of foreign sovereignty

All problems associated with economic backwardness of the country are responsible for this.

This topic will be widely discussed in PUBLIC FINANCE.

The variables affecting the Public Debt are Multi-dimensional as listed below :

1. Growing public expenditure

2. Slow growth in public revenue

3. Dual Deficits-Fiscal Deficit &Current Account Deficit (Balance of payments)

4. Deficit in balance of trade

5. Chronic depreciation of domestic currency

6. Growing rate of Inflation/Deflation (Economic Instability)

7. Poor growth in industrial production

8. Inadequate/Poor infrastructure

9. Size of the population-Poor Demographic indicators

10. Rate of Unemployment & Poverty

11. Economic /Geographical inequalities

12. Composition of GDP-Predominance of Primary Sector

13. Natural Calamities

14. Welfare Measures/Subsidies

15. Midterm Elections &War threat/impact

16. Radical changes in macroeconomic policies like Budgetary/Fiscal Policy/Monetary Policy

With best wishes

Dr.L.Krishna Veni

Professor

Siva Sivani Institute of Management

Secunderabad

Thank you for a comprehensive reply Professor Dr. Krishnaveni Lankapotu !

There are many factors affecting the public debt e.g.

Quality of institutions

Governance

International trade ( Imports and exports)

Political stability

Debt management system (Accountability and efficient ways to invest in productive sectors)

Debt analyst and experts

Peace and social awareness

Long term policies (Free from government interference )

etc

Thank you for your reply Mr. Muhammad Dawood

Hello, Ms Silvia Zarkova You can see my publication Deleted research item The research item mentioned here has been deleted

Best regards!

Thank you for sharing witth me your useful article Bilyana Damyanova and for your answer Roberto - Minadeo

Debt is an accumulation of deficit. Deficit happens if the revenue is less than expenditure in any budget year. Therefore, the determinants of revenue and expenditure (such as economic growth, investment, export/trade openness, exchange rates, tax avoidance, etc) could be empirically tested whether they affect the debt.

The interest rate is a function of the creditors' confidence in the country's ability to meet its commitments. Robust management of public affairs will allow low interest rates, which are good for governments and the economy as a whole, as credit grows, favoring higher income and employment.

Corruption. Investment in long-term projects

Thank you for your recommendations Mr. Taher Alkhalaf Mr. Roberto - Minadeo Mr. Akhmad Solikin !

Follow.

There are many factors such as, financial system, natural resources, investment projects, human resources development, International relationship and trade ( Imports and exports) and Political stability.

Thank you so much for your replies Leandro Tripodi

Excessive governmental bureaucracy, inefficiency of utilizing resources and poor planning on the part of people in power are some of the reasons.

In addition to Professor Akhmad Solikin's reply, developing countries often allow a targeted deficit with the intention of achieving higher economic growth. By working in a deficit budget, the government enlarges its capacity in accumulating capital. As a result, more economic activities can be performed which allow higher economic growth to be achieved. Surely, the extent of the deficit must be controlled. Some countries consent a 3% deficit which is stipulated in their law.

Thank you for your replies Mr. Srini Vasan and Mr. Yudhi Dharma Nauly

I believe that the following reasons are mainly responsible for the growing public debt in developing economies:

1. Inadequate public revenue

2. Residual Gap between Public Revenue and Public Expenditure (Fiscal deficit)

3. Recession & Inflation (Business Cycles)

4. Growing Unemployment

5. Current Account Deficit

6. Corruption

7. Drastic changes in the Development Strategy of the government

8. Rate of Inflation

9. Unexpected Elections

10. Natural Calamities-Rehabilitation and Reconstruction Activities

11. War effect

12. Formation of New States

13. Inadequate Infrastructure

14. Poor Human Development

Regards

Dr.L. Krishna Veni, Professor

Siva Sivani Institute of Management

Secunderabad, India

Thank you so much for your detailed reply Dr Krishnaveni Lankapotu, Professor!

A discipline in public management is crucial to keeping debt within acceptable limits.

May I argue that this problem is a result of a negative cascading process impact within the global economic network:

Phillip Inman (2019). "Debt in developing economies rises to record $55tn - Much of growth in debt levels driven by China, says World Bank" , Guardian News & Media Limited, Available at:https://www.theguardian.com/business/2019/dec/19/debt-in-developing-economies-rises-to-record-55tn

This article specifies that:

" “Those characteristics pose challenges that policymakers haven’t had to tackle before. For example, non-resident investors today account for 50% of the government debt of emerging and developing economies, considerably more than in 2010. For low-income countries, much of this debt has been on non-concessional terms, and outside the debt-resolution framework of the Paris Club.” "

Chukwuka Onyekwena & Mma Amara Ekeruche (2019). "Africa in focus:

Is a debt crisis looming in Africa?" Citation: " Three key factors drove the subsequent debt crisis—the 1980s global recession, the rise in interest rates in developed countries, and a decline in real net capital inflows, which was largely due to the real negative interest rate in many countries."   Copyright 2020 The Brookings Institution, Available at: https://www.brookings.edu/blog/africa-in-focus/2019/04/10/is-a-debt-crisis-looming-in-africa/

Yours sincerely, Bulcsu Szekely

Nice and interesting topic.. In the current research , I need a reference on how to develop the debt sustainability variable..

Dear Mr. Hamid Muili I would recommend you to read the following debt article Article Debt management evaluation through Support Vector Machines: ...

Best regards!

Governments' credibility dictates the strength of their currencies and interest rates. Many countries have more robust levels of governance than ever before, resulting in possible interest rate cuts.

During this pandemic time, we observe that governments run an expansionary fiscal policy. This policy is aimed to expand the provision of health care as well as to dampen the social and economic impact of the pandemic. It is natural to see a surge of government debt to finance this policy. Some governments even loosen their fiscal discipline to legitimate larger debt.

Hi, Yudhi Dharma Nauly

I totally agree, adding that times like the pandemic require a different reasoning than strictly monetarist, calling for Keynesian solutions.

During the pandemic period, a lot of money is required to spend for TRACE, TEST&TREAT (3Ts) the cases of Covid19 in all the countries.

Apart from this , Lockdown has crated havoc on the lives of the people and the economies.

Closure of all manufacturing and service units,

Unemployment,

a drastic decline in percapita income &Standard of living, tax revenue, and the revenue from Public sector units and GDP are the imprtant reasons for the growing debt of many states and conutries.

Growing inflation, Rehabilitation to the Migrant labourers,porovision of food supply to the people under PDS and signifuicant increase in amount of money on health and medicare also have added fuel to the economies,which are suffering from fiscal decit.

But to get the data about all the variables,we have to wait for some more time to measure the impact of different variables on Public Debt.

Dr.L.Krishna Veni

Dear Mr. Roberto - Minadeo , Mr. Yudhi Dharma Nauly , Mrs. Krishnaveni Lankapotu thank you so much for the interesting and up-to-date answers. The topic of government debt remains relevant today in the context of a global pandemic of COVID-19. I wish you a fruitful and successful research and I will be happy to share your scientific publications on the subject.

Best regards!

Thank you for a fascinating topic.

Dear Dr Roberto - Minadeo

1. How could we know what is the "acceptable limit" of an economy?

2. In the pandemic, many governments have expanded their expenditure and kept the interest rates at a low level. But suppose the pandemic continues for a few more years. In that case, economic growth continues to decline to the point that keeping interest rates low is no longer effective, the pension burden,..what should government do to keep public debt at an "acceptable limit"?

As i found the determinants of external debt in developing economies, the same determinants are there for public debt such as income consumption gap, saving-investment gap, govt revenue-consumption gap (deficit), export-import gap (trade deficit), exchange rate, interest rate (especially interest rate on debt servicing), debt servicing, international reserves, inflation. Governance and political indicators, international shocks (oil prices, financial and other crises such as 1997, 2008, 2019), even natural disasters etc. See my paper https://www.researchgate.net/publication/354638712_An_empirical_investigation_into_the_determinants_of_external_debt_in_Asian_developing_and_transitioning_economies?_sg=jIgOL1ig7oeai-6MWHwy0a8hQ30l_OZjdqaBiY09qL3pUxMRd52S5Vau7I2o5D_pLXUrxh0pIuAHlVuE6lF26aui1k6QT7bWr2wDUZtR.lbEonKhqDDiCHQNLVlopoI8JKCnw6LVZb5g1pRjY6xY_N6X4sDBLJxBz8UusmdS06OdFl5_CywJbtSU5DS1k2w

Thank you for your replies and you interesting comments Thi Kieu Trang Dong and Muhammad Dawood