Journal article 35 views
Global shocks and the debt‐growth nexus
Fabrizio Casalin,
Giorgio Fazio,
Jacoub Sleibi 
Economic Inquiry, Pages: 1 - 20
Swansea University Author:
Jacoub Sleibi
Full text not available from this repository: check for access using links below.
DOI (Published version): 10.1111/ecin.70045
Abstract
This paper re-examines the relationship between debt and growth with and without the influence of global shocks for a panel of 22 economies. The analysis introduces an approach that accounts for the complexity of global factors and estimates the debt-to-growth and growth-to-debt nexus for household,...
| Published in: | Economic Inquiry |
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| ISSN: | 0095-2583 1465-7295 |
| Published: |
Wiley
2026
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| Online Access: |
Check full text
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| URI: | https://cronfa.swan.ac.uk/Record/cronfa71373 |
| Abstract: |
This paper re-examines the relationship between debt and growth with and without the influence of global shocks for a panel of 22 economies. The analysis introduces an approach that accounts for the complexity of global factors and estimates the debt-to-growth and growth-to-debt nexus for household, corporate, and public debt from a purely idiosyncratic perspective. The results reveal a multifactor structure: global shocks drive variation in household and public debt, whereas corporate debt exhibits predominantly idiosyncratic dynamics. These global shocks alter the magnitude and statistical significance of the idiosyncratic debt-growth nexus, demonstrating their critical role in identifying the underlying relationship. |
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| Keywords: |
debt, growth, Cross‐Sectional Dependence, common factors |
| College: |
Faculty of Humanities and Social Sciences |
| Start Page: |
1 |
| End Page: |
20 |