This paper analyzes the panel data of 60 countries
during the period 1990-2014.It
employs non-radial and non-angled slack-based measure (SBM) method to count the
economic growth efficiency and inefficiency sources under government debt
constraints. The results show that traditional efficiency is usually higher
than economic growth efficiency, and the latter can better reflect real economic
situation. In addition, debt inefficiency is the main cause of declining
economic growth efficiency in all countries, and it has the greatest impact on
developing countries. Meanwhile, this paper also adopts the global reference
Global-Malmquist-Luenberger (GML) index to
measure total factor productivity (TFP) and further decomposes it into technological changes and efficiency
changes. It is found that technological progress and efficiency improvement are
the main driving forces for enhancing total factor productivity.
References
[1]
Reinhart, C.M. and Rogoff, K.S. (2011) From Financial Crash to Debt Crisis. American Economic Review, 101, 1676-1706. https://doi.org/10.1257/aer.101.5.1676
[2]
Reinhart, C.M. and Rogoff, K.S. (2010) Growth in a Time of Debt. American Economic Review, 100, 573-578. https://doi.org/10.1257/aer.100.2.573
[3]
Cecchetti, S.G., Mohanty, M.S. and Zampolli, F. (2011) The Real Effects of Debt. Social Science Electronic Publishing, 68, 145-196.
[4]
Minea, A. and Parent, A. (2012) Is High Public Debt Always Harmful to Economic Growth? Reinhart and Rogoff and Some Complex Nonlinearities. Working Papers 201218, CERDI.
[5]
Checherita-Westphal, C. and Rother, P. (2012) The Impact of High Government Debt on Economic Growth and Its Channels: An Empirical Investigation for the Euro area. European Economic Review, 56, 1392-1405.
https://doi.org/10.1016/j.euroecorev.2012.06.007
[6]
Pescatori, A., Sandri, D. and Simon, J. (2014) Debt and Growth: Is There a Magic Threshold? International Monetary Fund, IMF Working Paper No. 14/34.
[7]
Salotti, S. and Trecroci, C. (2016) The Impact of Government Debt, Expenditure and Taxes on Aggregate Investment and Productivity Growth. Economica, 83, 356-384. https://doi.org/10.1111/ecca.12175
[8]
Swamy, V. (2015) Government Debt and Economic Growth—Decomposing the Cause and Effect Relationship.
[9]
Calderón, C. and Fuentes, J.R. (2013) Government Debt & Economic Growth. Inter-American Development Bank, Washington DC.
[10]
Afonso, A. and Jalles, J.T. (2013) Growth and Productivity: The Role of Government Debt. International Review of Economics & Finance, 25, 384-407.
https://doi.org/10.1016/j.iref.2012.07.004
[11]
Liu, J.L. (2013) Research on the Rational Scale of Government Debt Based on Economic Growth Perspective: Evidence from OECD. Economic Issues, 12, 25-30.
[12]
Liu, H.Z., Yang, G.Y. and Yin, L. (2014) Government Debt, Economic Growth and Nonlinear Effects. Statistical Research, 4, 29-38.
[13]
Cheng, Y.D. and Gong, L.T. (2014) The Impact of Government Debt on Economic Growth and Its Channels. Journal of Quantitative & Technical Economic Research, 31, 22-37.
[14]
Cheng, Y.D. and Gong, L.T. (2015) The Economic Growth Effect and Influencing Channel of Foreign Debt—Comparison of Developed Countries and Developing Countries. Journal of Quantitative & Technical Economics Research, 32, 108-123.
[15]
Tone, K. (2001) A Slacks-Based Measure of Efficiency in Data Envelopment Analysis. European Journal of Operational Research, 130, 498-509.
https://doi.org/10.1016/S0377-2217(99)00407-5
[16]
Li, J. (2013) China’s Economic Growth Efficiency under the Dual Constraints of Energy and Environment—Analysis Based on Unexpected Output Model. Science and Technology Management Research, 33, 209-214.
[17]
Zhang, W., Zhao, S., Long, H., et al. (2015) Economic Growth Efficiency Based on SBM Method and Decomposition of Total Factor Productivity: Taking Sichuan Province as an Example. Finance and Economics, No. 8, 100-111.
[18]
Wang, Z. and Feng, C. (2015) Sources of Production Inefficiency and Productivity Growth in China: A Global Data Envelopment Analysis. Energy Economics, 49, 380-389. https://doi.org/10.1016/j.eneco.2015.03.009
[19]
Chung, Y.H., Fare, R. and Grosskopf, S. (1997) Productivity and Undesirable Outputs: A Directional Distance Function Approach. Journal of Environmental Management, 51, 229-240. https://doi.org/10.1006/jema.1997.0146
[20]
Oh, D. (2010) A Global Malmquist-Luenberger Productivity Index. Journal of Productivity Analysis, 34, 183-197. https://doi.org/10.1007/s11123-010-0178-y
[21]
Vandenbussche, J., Aghion, P. and Meghir, C. (2006) Growth, Distance to Frontier and Composition of Human Capital. Journal of Economic Growth, 11, 97-127.
https://doi.org/10.1007/s10887-006-9002-y
[22]
Gu, Y. and Liu, Y. (2017) Financial Development and Industrial Structure Adjustment—Based on the Analysis Perspective of Production Factor Distribution. Journal of Finance, No. 2, 98-109.
