چکیده:
The financial crisis that was started in the last months of 2008, spread out to all world countries in short-term and had broken out as public debt in the European Union and Euro area. Most affected countries from this financial crisis had been Portugal, Ireland, Italy, Greece, and Spain were named as PIIGS countries of Europe. The effect of public debt on economic growth had been analyzed for PIIGS countries in this study. First, cross-sectional dependency and homogeneity tests had been performed for variables. The existence of cointegration between series had been analyzed by cointegration test with a multi-structural break is developed by Westerlund (2009). While cross-sectional dependency has been determined for general of the panel at the result of the analysis made, it has been seen that series are not stationary in the level and they become stationary when their first differences are taken. In addition, it had been found that there is cointegration between series at the result of cointegration that considers structural
خلاصه ماشینی:
As seen from both figures, while economic growths of related countries were showing negative tendency in era of 2007-2013 that crisis was more intense, lot in GDP of public debt has gradually increased between these years in same countries.
Cordella (2005) had analyzed relation between public debt and economic growth in study that he made for 79 developing countries between 1970 and 2002.
Mencinger and Aristovnik (2013) had tried to analyze the short-term effects of public debt on economic growth as empirically for old member states of EU in between 1980 and 2010, and new member states in between 1995 and 2010 in the analysis that was made for 25 European Union countries.
Zouhaier and Fatma (2014) had analyzed the effect of public debt on economic growth in 19 developing countries in the era of 1990-2011 by the help of dynamic panel data analysis.
Since cross-sectional dependency were found among countries composing the panel in the study, unit root test that was developed by Smith et al.
While there is cross-sectional dependency between series, making analysis by disregarding this situation has affected the obtained results (Breusch and Pagan, 1980; Pesaran, 2004).
190 There is cointegration There is cointegration There is cointegration There is cointegration According to second-generation panel of unit root test results in Table 4, long-term relation between public debt, capital and GDP that are stable in first difference had been tested by panel cointegration with multi structural break method developed by Westerlund (2006).