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The Impact of Public Debt on the Economic Growth for the Gulf Cooperation Council Countries

Abstract

In this paper, I study the government debt to GDP ratio impact on per-capita GDP growth rate for six Gulf Cooperation Council (GCC) countries, namely, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and UAE over a period of about 23 years starting in 1990. Some light has shed on the European Union (EU) relationship with the GCC for better economic growth. The test results are consistent with some studies in literature that proved a negative correlation between public debt and nation’s economic growth above certain threshold although this threshold is not standard. Public debt for the GCC countries has different effects on per capita GDP growth varying from country to country due to the variation in a number of different factors. The main finding of this study shows that country government debt and macroeconomic determinants have varied impacts on per capita GDP growth for various countries based mainly on their government debt ratios.

Author(s)

hanadi Taher

Coauthor(s)

hanadi Taher

Journal/Conference Information

International JournalEuro-MediterraneanStudies,ISSN: 1855-3362, Volume: 9, Issue: 2, Pages Range: 27-44