The Effects of Government Debt on Private Investment in Bulgaria
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Academic Publishing UNWE (AP-UNWE)
Abstract
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The main objective of this study is to establish whether there is a relationship between government debt and private investment in Bulgaria, as well as to identify the impact of debt on investment in the long and short-run period. The cointegration analysis and a model with vector error correction are applied in the research. Empirical findings of the study show that the crowding-out hypothesis in Bulgaria cannot be confirmed.
Keywords
Government debt, Crowding out effect, Private investment, E62 - Fiscal Policy • Modern Monetary Theory, H60 - General, H63 - Debt • Debt Management • Sovereign Debt