| Abstract [eng] |
Public Debt and its Management in Lithuania and Poland. The main purpose of this master thesis is to analyze the factors influencing the structure, dynamics and volume of public debt in Lithuania and Poland and to determine the relationship between the country's economic indicators and the amount of public debt in the period under review. The work consists of three main parts: the analysis of scientific literature, the research methodology and research results, conclusion and recommendations. Literature analysis reviews the concept and classification of public debt, presents some important researches of economists which explains how the public debt influences the economic growth. Furthermore, it reveals the causes and risks of borrowing and provides public borrowing facilities. After the literature analysis research design was setup, research methods and indicators were selected. First of all, the macroeconomic situation of the selected countries was analyzed, debts structures were compared and the main public debt ratios were calculated. After this, regression analysis was applied to get the most information from data. The main purpose of empirical research was to identify economic factors which have a decisive influence on public debt. The performed research revealed that Lithuania's public debt is growing as the country's interest on government borrowing, government budget expenditures and the country's exports increase. A study of Polish factors has shown that public debt can be affected in two ways: public debt is increased by an increase in interest paid by the country on public borrowing, and reduced by an increase in government revenue and expenditure and a government deficit/surplus. It was also noted that the largest impact on debt in Lithuania is the state budget expenditures, and in Poland - the state budget revenues. Thus, it can be concluded that government borrowing is most affected by changes in government deficits/surpluses and their main components revenue and expenditure. The conclusions and recommendations summarize the main concepts of literature analysis as well as results of the situation analysis and empirical research. Despite that the lack of analyzed statistics could have led to undesirable errors in the model, the author believes that this paper could be used for the future analysis of public debts in countries. |
