The Journal of Economic Studies and Policies

The Journal of Economic Studies and Policies

Threshold Effect of General Government Debt on Economic Growth in Middle East and North Africa Countries (Logistic Smooth Transition Regression Approach in Panel Data)

Document Type : Original Article

Authors
Jafar Zhilaei Aghdam 1
Alireza Daghighiasli 2
Majid Afsharirad 3
Marjan Damankeshide 4
Ali Esmaelzadeh 5
1 PhD student of Department of Economics,Azad University, Tehran Branch. Tehran. Iran
2 Assistant Professor of Department of Economics,Azad University, Tehran Branch, Tehran. Iran
3 Associate Professor of economics, department of Economics, Kharazmi University, Tehran, Iran
4 Assistant Professor of economics, Department of Economics,Azad University, Tehran Branch , Tehran, Iran
5 Associate Professor of Financial Management, Azad University, Tehran Branch, Tehran, Iran
Abstract
The achievement of high economic growth rates and stable including the important issues of each country. On the other hand, government debt and threshold effects (especially on economic growth) is also one of the basic problems of countries into account. Hence, the purpose of this study was to investigate the effect of general government debt ratio on economic growth in MENA counties during the period of 2000-2019. To conduct this review of panel data regression model a gentle transition (PSTR) has been used. The test results being linear, nonlinear relationship between strongly studied variables to verify it. Also in terms of the transfer of a function with a parameter of a threshold which represents a model of two nonlinear regime stipulated for the relationship among the variables with Adequacy Based on the results of a threshold for MENA countries, , in order to 38.1 also against the slope parameter 1.74 estimated. In MENA countries the first variable in the extent of the general government debt ratio positive affect and negative affect in the second part they have on economic growth.
Keywords
Threshold Effect
General Government Debt
Economic Growth
Logistic Smooth Transition Regression in Panel Data
MENA Countries

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The Journal of Economic Studies and Policies
Volume 6, Issue 2 - Serial Number 12
Issue 12
November 2020
Pages 29-58