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.
Journal/Conference Information
International JournalEuro-MediterraneanStudies,ISSN: 1855-3362, Volume: 9, Issue: 2, Pages Range: 27-44