AN ANALYSIS OF PUBLIC DEBT LEVELS IN BOTH DEVELOPED AND DEVELOPING COUNTRIES

  • Sonja S Arsić Univerzitet u Nišu, Ekonomski fakultet, Finansije i bankarstvo
  • Jelena Obradović Visoka poslovna škola strukovnih studija, Novi Sad
  • Miloš Stojanović Univerzitet u Nišu, Ekonomski fakultet
DOI: https://doi.org/10.5937/skolbiz1-8295
Keywords: PUBLIC DEBT, the gross domestic product, tax revenues,

Abstract


The main objective of this paper is pointing out the importance of high public debt problem as well as the underlying causes that have led to rise in public debt in selected countries. The following methods were used in this research: historical method, deduction, generalization methods and statistical methods. By observing data on ten-year trend of public debt in selected countries, we have concluded that there is a trend of increase in public debt, as a percentage of the gross domestic product of a country. Each of the analyzed countries (Canada, United Kingdom, Greece, Argentina and Serbia) has specific causes that have led to rise in public debt, but the main cause that is common to all countries is the excessive consumption of state organs and reduction of tax revenues that has arisen as a result of reduced economic activity due to the global economic crisis in recent years. By analyzing the data on the trend of public debt in the observed countries in the period from 2003. to 2014., we have concluded that the problem can be solved by increasing  gross domestic product, or reducing government spending.

 

Author Biographies

Sonja S Arsić, Univerzitet u Nišu, Ekonomski fakultet, Finansije i bankarstvo
Phd student, finansije i bankarstvo
Jelena Obradović, Visoka poslovna škola strukovnih studija, Novi Sad
Asistent u nastavi

References

Buckley, R., & Arner, F. D. (2011). From Crisis to Crisis: The Global Financial System and Regulatory Failure. The Netherland: Kluwer Law international.

DebtClock. (2015). Canada’s National Debt Clock. Preuzeto sa http://www.debtclock.ca.

Đorđević, M., & Veselinović, P. (2010). Razvojne karakteristike srpske ekonomije u periodu tranzicije. Škola biznisa, 1, 21–30.

European Communities. (1992). Protocol on the excessive deficit procedure. Official Journal of the European Communities, C, 191, 131–132. Preuzeto sa http://constitution-europeenne.info/an/eu_treaty.pdf.

Eurostat. (2015). General government gross debt - annual data. Preuzeto sa http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=teina225&plugin=1

IMF. (2010). Greece: Staff Report on Request for Stand-By Arrangement.

IMF. (2011). Greece: Fourth Review Under the Stand-By Arrangement and Request for Modification and Waiver of Applicability of Performance Criteria.

IMF. (2011). Greece: Fifth Review Under the Stand-By Arrangement, Rephasing and Request for Waiwers of Nonobservance of Performance Criteria. U Press Release on the Executive Board Discussion; and Statement by the Executive Director for Greece.

Kirchgässner, G. (2014). On the Political Economy of Public Deficits and Debt. German Economic Review, 15(1), 116–130. doi:10.1111/geer.12029.

Kolačević, S., & Hreljac, B. (2011). Javni dug kao ključna varijabla ostvarenja ciljeva ekonomske politike. Ekonomski pogledi, 62(3–4), 208–229.

Levey, C., Ozarow, D., & Wylde, C. (2014). Argentina Since the 2001 Crisis. New York: Palgrave Macmillan.

Ministarstvo finansija Republike Srbije, Uprava za javni dug. (2014). Stanje i struktura javnog duga. Preuzeto sa http://www.javnidug.gov.rs/upload/Stanje%20i%20struktura/Stanje%20i%20struktura%20-%20SRB%20CIRILICA.pdf.

Ministry of Finance of Greece. (2010). Update of the Hellenic Stability and Growth Programme Including an Updated Reform Programme.

Rosen, H. S. (1999). Javne financije. Zagreb: Institut za javne financije.

The Economist. (2015). The global debt clock. Preuzeto sa http://www.economist.com/content/global_debt_clock.

Trading Economics. (2015). Argentina Government Debt to GDP. Preuzeto sa http://www.tradingeconomics.com/argentina/government-debt-to-gdp.

Trading Economics. (2015). Canada Government Debt to GDP. Preuzeto sa http://www.tradingeconomics.com/canada/government-debt-to-gdp.

Trading Economics. (2015). Greece Government Debt to GDP. Preuzeto sa http://www.tradingeconomics.com/greece/government-debt-to-gdp.

Trading Economics. (2015). Serbia Government Debt to GDP. Preuzeto sa http://www.tradingeconomics.com/serbia/government-debt-to-gdp.

Zakon o javnom dugu. Službeni glasnik RS, br. 61/05, 107/09 i 78/11.

Žigulić, M. (2012). Argentinska kriza. Menadžer magazine, Preuzeto sa http://www.manager-magazine.com/index.php/gospodarstvo/85-argentinska-kriza.

Published
2015/12/24
Issue
No. 1 (2015): Škola biznisa
Section
Professional Paper
Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.

  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).