The Impact Of Government Debt On Economic Growth In Emerging Market Countries

Government debt is a kind of borrowing activity that the government departments of a country as a debtor, with its own credit ability in the domestic and foreign financial markets to issue bonds and raise funds. In 2007, the subprime crisis and the global financial crisis in 2008, in order to deal with the problem of liquidity in the crisis and the long-term economic recovery, governments generally adopted Keynes’ s expansionary fiscal policy to stimulate economic development, which is the rapid increase in the size of government debt. Especially after the European sovereign debt crisis, government debt of developed countries has once again aroused global attention, but the debt problems of emerging market countries seem to stay out.At present, the relationship between government debt and economic growth has not formed a consensus in the academic circles, but the scale of government debt has important practical significance for the economic recovery and the "resumption of growth" after the crisis. This paper will focus on emerging market economies, using 16 emerging market countries as sample, using panel data from 2013 to 1990, empirical research on the impact of government debt on economic growth in emerging markets, the main research conclusion is that the impact of government debt on economic growth in emerging markets has a nonlinear effect, and emerging market countries government debt on the growth of the turning point higher than the level of developed countries. China as the world’s largest emerging market countries, this paper’s research conclusion is: China in the process of economic growth should avoid over reliance on government debt, but also need to change the concept of growth, vigilance government debt is too high cause economic growth fell.