Public debt and pro-poor economic growth evidence from South Asian countries

Figures & data

Table 1. Data sources.

Sr. no.	Name of variable	Data source	Comment
1.	Per capita GDP (Y)	WDI	Current GDP in US$/ Population
2	GINI coefficient (gini)	WDI+WIID 2.0	GINI coefficient in percent form
3.	Investment (K)	WDI	Gross capital formation as percentage of GDP
4	External debt (EDY)	WDI	Public and publicly guaranteed external debt as percentage of GDP
5.	Debt Servicing (DSX)	WDI	Debt servicing of Public and Publicly guaranteed external debt as percentage of Exports.
6.	Openness (op)	WDI	(Exports + Imports)/GDP*100
7.	Urbanisation (ur)	WDI	Urban population as percentage of total population
8.	Inflation (inf)	WDI	Consumer Price Index
9.	Domestic Debt (ddy)	IFS	Domestic debt as percentage of GDP. Abbas (2007) has defined domestic debt as ‘all domestically held claims of central government’ on the analogy of the definition of public & publicly guaranteed external debt by Global Development Finance. In this regard, International Financial Statistics (IFS) database series 22a+42a and 20c+40c serve the purpose.
			Domestic Debt = Bank’s claims on government + Central bank securities =IFS [(22a+42a)+(20c+40c)]
10.	GDP growth rate (Yg)	WDI	GDP growth rate

Sources: WDI, IFS and WIID.

Table 2. Estimation results (dependent variable: GDP growth rate).

Name of independent variable	FEM (OLS)	FEM (2SLS)	FEM (GMM)
Constant	−7.814363* (–3.656840)	9.168527* (2.316762)	11.66786 (0.954036)
OP	0.746372** (1.775114)	0.908640** (1.672023)	1.478639* (4.071285)
ED_Y	−1.009998* (–3.882383)	−0.780312* (–3.205759)	−1.371377* (–3.091262)
DS_X	−0.168178 (–0.344789)	−3.252335 (–1.496380)	−0.009899 (–0.014209)
DD_Y	0.085727** (1.682368)	1.437492* (3.331471)	1.543533* (4.135519)
INF	−0.011432 (–0.164473)	−1.160165 (–1.056939)	0.544320 (0.513780)
UR	1.860627* (10.58610)	0.514006* (5.062864)	1.745794* (2.909313)
KT	1.507148* (3.154160)	1.161653** (1.798354)	1.777032** (1.822358)
R^2	0.572507	0.487524	0.510806
Adjusted R^2	0.524236	0.426305	0.509934
Durban-Watson Statistic	2.152582	1.926971	1.860760
F-Statistic	3.573757	3.458394	…
P-value of F-statistic	0.001582	0.008909	…

Source: Estimation results by using Eviews 6.0.

* and ** denotes significance at 5% and 10% level respectively and values in parenthesis are t-statistics.

Table 3. Estimation results (dependent variable: GINI coefficient).

Name of Independent variable	FEM (OLS)	FEM (2SLS)	FEM (GMM)
Constant	5.18207* (12.07922)	2.96820* (7.31172)	3.04182* (10.82813)
YT	−0.30443* (–9.14125)	−0.06932* (–2.02984)	−0.09019* (–2.14172)
OP	0.26622* (6.33050)	0.23847* (2.39986)	0.26150* (6.50734)
ED_Y	−0.05390 (–1.19765)	−0.10375 (–1.16241)	−0.12183 (–0.87212)
DS_X	−0.03974 (–1.37268)	−0.01769 (–0.40112)	−0.02607 (–1.09237)
DD_Y	−0.00431* (–2.16167)	−0.05381* (–4.40425)	−0.05510* (–4.49382)
INF	0.00160 (0.13645)	0.01422 (1.47671)	0.01724 (1.40490)
UR	0.10568* (1.91222)	0.14218* (3.21260)	0.15208* (3.39136)
KT	0.01860 (0.36196)	0.02827 (0.43112)	0.02105 (1.27823)
R^2	0.69352	0.68785	0.61784
Adjusted R^2	0.66337	0.66538	0.59358
Durban-Watson Statistic	1.97550	1.78170	2.15643
F-Statistic	23.00546	21.59035	…
P-value of F-statistic	0.00000	0.00000	…

Source: Estimation results by using Eviews 6.0.

* and ** denotes significance at 5% and 10 % level respectively and values in parenthesis are t-statistics.

Abbas, S. M. (2007) Public Domestic Debt and Growth in LICs ( Draft doctoral thesis). University of Oxford, Oxford. Retrieved from http://users.ox.ac.uk/~hert1734/Public%20domestic%20debt%20and%20growth.pdf

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