| Abstract [eng] |
The Master‘s thesis examines the evaluation of the impact of public debt on economic growth in different economic cycle phases. The aim of this thesis is to evaluate the influence of public debt on economic growth across different economic cycles in the 27 countries of the European Union. The first part of the work presents a definition of public debt and economic growth. The impact of public debt on economic growth is analysed in the context of economic cyclicality based on an analysis of scientific articles. This section of the work presents an analysis of the factors that influence economic growth. The second part of the work presents a methodology for assessing the impact of public debt on economic growth in different phases of the economic cycle. The hypotheses are presented, the factors influencing economic growth are outlined, and the sequence of the study is explained, indicating the stages of building the empirical model. The third part of the work presents an analysis of the dynamics of public debt in EU countries. The model is assessed for robustness, and econometric analysis is performed. The findings are compared with those of other studies. Conclusions are also presented. The results obtained in Model (I) indicate that public debt does not have a significant influence on economic growth during periods of recession. However, Model (II) results confirm that public debt negatively impacts on economic growth during the recession phase. The results of Model (III) demonstrate that the impact of public debt on economic growth does not differ depending on whether countries ‘public debt level is above the Maastricht criteria or not. |
