The study investigates debt impact on economic growth in ten Central and Eastern European countries from 2001 until 2012. In the existing literature, the theoretical and empirical analyses provide contradicting results on the debt influence on economy, while the global financial and sovereign debt crises encourage new investigations in this field. The determination of debt impact on GDP growth is based on the neoclassical Solow growth model and testified with dynamic OLS, FE and differenced and system GMM estimators. The empirical results prove that the level of debt has the most statistically significant impact on physical capital growth and TFP growth. Furthermore, the decomposition of debt indicates that the GDP growth is explained the most accurately by the incorporation of government, corporate and household debts as separate explanatory variables. The corporate debt has the most significant negative effect on the GDP growth, while the impact of public debt is lower but negative as well. The statistically insignificant household debt encourages evaluating the importance of practical significance of this variable. Further research could take this into consideration as well as the inclusion of new instrumental variables in the dynamic GMM models.
The study investigates debt impact on economic growth in ten Central and Eastern European countries from 2001 until 2012. In the existing literature, the theoretical and empirical analyses provide contradicting results on the debt influence on economy, while the global financial and sovereign debt crises encourage new investigations in this field. The determination of debt impact on GDP growth is based on the neoclassical Solow growth model and testified with dynamic OLS, FE and differenced and system GMM estimators. The empirical results prove that the level of debt has the most statistically significant impact on physical capital growth and TFP growth. Furthermore, the decomposition of debt indicates that the GDP growth is explained the most accurately by the incorporation of government, corporate and household debts as separate explanatory variables. The corporate debt has the most significant negative effect on the GDP growth, while the impact of public debt is lower but negative as well. The statistically insignificant household debt encourages evaluating the importance of practical significance of this variable. Further research could take this into consideration as well as the inclusion of new instrumental variables in the dynamic GMM models.
In Lithuania, like in other European countries where dynamic processes of economy reorganization are proceeding, there is a constant impact with lack of funds to finance these processes. Objectively, when limited resources of finance funds are in countries, lending abroad has a huge influence on strengthening their financial systems and providing them with necessary funds. Policy of national debt management is inseparable part from national economy. Taking about national debt, one constantly confronts to budget deficit. The country is forced to finance formed budget deficit with loans. All countries of transitional economy need huge investments to modernize economy. The proportion of national stockpiling and gross domestic product (GDP) at that time is not high; therefore, the country does not have enough own resources for investments. Therefore, such countries, including Lithuania, have to borrow, and that is very normal. The country in credit relations participates like their subject. Usually the country takes a loan and guarantees for bigger sums than lends. The most important reason of this condition is that though national credit raised funds change taxes and funds collected in other ways. That is the main reason of formed national debt. Local finance resources are the most suitable country's finance resources, especially if there resources are denominated by national currency. Inland debt is a very important factor that presents the level of country's economical development. However, if financial demands are higher than it is expected to save funds inside the country, the country has to supplement its inland resources with foreign finance resources. It is important to analyse this theme as managing national debt and predicting Lithuania's loan perspective it is necessary to know how national debt has changed and what reasons have influenced these changes. National debt, its changes and their management are analysed in this paper. Object of the paper: Lithuanian national debt and its management. Aim of the paper: to value theoretical reasons of national debt and Lithuania's loan changes and perspective. Tasks of the paper: - To analyse theoretical aspects of national debt and its management. - To analyse EU raised criteria for national debt. - To evaluate Lithuania's national debt's changing tendencies in the period of 1993-2006. - To evaluate Lithuania's loan perspective. - To formulate conclusions. Research methods that are used in this paper: - Analysis of literature; - Logical analysis; - Data structure method; - Vertical and horizontal analyses; - Graphical method. The paper consists of 3 main parts. In the first part of the paper, theoretical aspects of national debt and its management are analysed. In the second part of the paper tendencies of national debt in the period of 1993-2006 are valuated. In the third part of the paper Lithuania's loan politic in the contests of European Union is valuated. The paper consists of 70 pages, 6 tables, 21 picture and 8 appendixes are enclosed. 28 sources of literature are used.
In Lithuania, like in other European countries where dynamic processes of economy reorganization are proceeding, there is a constant impact with lack of funds to finance these processes. Objectively, when limited resources of finance funds are in countries, lending abroad has a huge influence on strengthening their financial systems and providing them with necessary funds. Policy of national debt management is inseparable part from national economy. Taking about national debt, one constantly confronts to budget deficit. The country is forced to finance formed budget deficit with loans. All countries of transitional economy need huge investments to modernize economy. The proportion of national stockpiling and gross domestic product (GDP) at that time is not high; therefore, the country does not have enough own resources for investments. Therefore, such countries, including Lithuania, have to borrow, and that is very normal. The country in credit relations participates like their subject. Usually the country takes a loan and guarantees for bigger sums than lends. The most important reason of this condition is that though national credit raised funds change taxes and funds collected in other ways. That is the main reason of formed national debt. Local finance resources are the most suitable country's finance resources, especially if there resources are denominated by national currency. Inland debt is a very important factor that presents the level of country's economical development. However, if financial demands are higher than it is expected to save funds inside the country, the country has to supplement its inland resources with foreign finance resources. It is important to analyse this theme as managing national debt and predicting Lithuania's loan perspective it is necessary to know how national debt has changed and what reasons have influenced these changes. National debt, its changes and their management are analysed in this paper. Object of the paper: Lithuanian national debt and its management. Aim of the paper: to value theoretical reasons of national debt and Lithuania's loan changes and perspective. Tasks of the paper: - To analyse theoretical aspects of national debt and its management. - To analyse EU raised criteria for national debt. - To evaluate Lithuania's national debt's changing tendencies in the period of 1993-2006. - To evaluate Lithuania's loan perspective. - To formulate conclusions. Research methods that are used in this paper: - Analysis of literature; - Logical analysis; - Data structure method; - Vertical and horizontal analyses; - Graphical method. The paper consists of 3 main parts. In the first part of the paper, theoretical aspects of national debt and its management are analysed. In the second part of the paper tendencies of national debt in the period of 1993-2006 are valuated. In the third part of the paper Lithuania's loan politic in the contests of European Union is valuated. The paper consists of 70 pages, 6 tables, 21 picture and 8 appendixes are enclosed. 28 sources of literature are used.
Heir's responsibility for debts of the succession is in Lithuania one of the most problematical sphere of the inheritance law. It takes still not enough notice of this law's institute. It lacks literature, which is approachable for any member of the society, who comes across negative effects of inheritance or who wants escape them. Many people think, that when they accept a succession, they accept just assets. But situation is different – they are obliged to pay the debts of the succession too, because Lithuania like and other in this work analyzed continental law countries, recognizes unlimited heir's responsibility, which can be limit to the extent of the value of the property of the succession. The people know little about the possibility to limit their responsibility for the devisor's debts when they make an inventory. It's not good, because a law's measure like this was brought in our Civil Code in 2001. It passed eight jears, but today we still don't have exhaustive works on this theme. This method of the succession acceptance still lacks of consideration of the law scientists and practitioners. We don't have laws, which detail content of the inventory and explain where the inventory may be consulted by persons concerned too. The legislator must do something not just in this law's sphere. He must take more notice of the acceptance of succession, when the heir takes possession in fact of the property of the succession too. The possession in fact of the property of the succession is the most problematical method of the succession acceptance. Today the heir, who accepts the succession in this method, has a period of three months for the renunciation of succession from the death of the testator, when he, for example, finds out that debts of the deceased are greater than his assets. It must be the same regulation in this law's sphere and it needs to determine, that when the heir accepts the succession in any method, which is recognized in Lithuania, such his act must be don't recall and final. That can help to escape the violation of interests of the creditors and coheirs and waste of the deceased's property.
Heir's responsibility for debts of the succession is in Lithuania one of the most problematical sphere of the inheritance law. It takes still not enough notice of this law's institute. It lacks literature, which is approachable for any member of the society, who comes across negative effects of inheritance or who wants escape them. Many people think, that when they accept a succession, they accept just assets. But situation is different – they are obliged to pay the debts of the succession too, because Lithuania like and other in this work analyzed continental law countries, recognizes unlimited heir's responsibility, which can be limit to the extent of the value of the property of the succession. The people know little about the possibility to limit their responsibility for the devisor's debts when they make an inventory. It's not good, because a law's measure like this was brought in our Civil Code in 2001. It passed eight jears, but today we still don't have exhaustive works on this theme. This method of the succession acceptance still lacks of consideration of the law scientists and practitioners. We don't have laws, which detail content of the inventory and explain where the inventory may be consulted by persons concerned too. The legislator must do something not just in this law's sphere. He must take more notice of the acceptance of succession, when the heir takes possession in fact of the property of the succession too. The possession in fact of the property of the succession is the most problematical method of the succession acceptance. Today the heir, who accepts the succession in this method, has a period of three months for the renunciation of succession from the death of the testator, when he, for example, finds out that debts of the deceased are greater than his assets. It must be the same regulation in this law's sphere and it needs to determine, that when the heir accepts the succession in any method, which is recognized in Lithuania, such his act must be don't recall and final. That can help to escape the violation of interests of the creditors and coheirs and waste of the deceased's property.
State debt management has direct impact on state's economical situation. State debt management is widely regulated by European Union's and Lithuania's laws. In that laws there are established institutional system, subject's rights and duties, policy of state debt management and borrowing procedures.
State debt management has direct impact on state's economical situation. State debt management is widely regulated by European Union's and Lithuania's laws. In that laws there are established institutional system, subject's rights and duties, policy of state debt management and borrowing procedures.
The steady state of debt in this article means that the stock of government debt does not change over the time. The paper reveals that the rule of the Stability and Growth Pact concerning the ceiling of 3% for the budget deficit is not sufficient to have a steady or non-increasing state of the debt. Great varieties of GDP growth and initial outstanding stock of the debt in the EU countries allow very substantial growth of the debt as well as decrease of the debt for individual country, despite the rule of 3% in place. The conclusions are based on the statistical data and the model of integral presentation form of the debt. The Stability and Growth Pact requirements should be put together with economic indicators of individual country and simulation of the debt development in the future defining the budget deficit and managing country deb
The steady state of debt in this article means that the stock of government debt does not change over the time. The paper reveals that the rule of the Stability and Growth Pact concerning the ceiling of 3% for the budget deficit is not sufficient to have a steady or non-increasing state of the debt. Great varieties of GDP growth and initial outstanding stock of the debt in the EU countries allow very substantial growth of the debt as well as decrease of the debt for individual country, despite the rule of 3% in place. The conclusions are based on the statistical data and the model of integral presentation form of the debt. The Stability and Growth Pact requirements should be put together with economic indicators of individual country and simulation of the debt development in the future defining the budget deficit and managing country deb
Object of the research – public debt. Aim of the research – to evaluate the Lithuanian public debt, to assess its influence on social expenditure. Objectives of the research: 1. to present the concept of public debt and to discuss the factors, which influence government borrowing needs; 2. to define the debt burden and to determine the effect of public debt on economy; 3. to provide the public debt evaluation criteria; 4. to evaluate the Lithuanian public debt in respect to the situation in the EU countries according to the identified criteria; 5. to determine the impact of the Lithuanian public debt on social expenditure and to compare it with that in other EU countries. Research methods. Analysis and synthesis of scientific literature and legal documents, statistical data collection and analysis methods, comparative analysis, graphical representation techniques, logical analysis, regression analysis. Research results. Part One introduces the concept of public debt, analyzes the factors influencing government borrowing needs, importance of borrowing to economy and structured models of debt burden. Part Two, having analyzed various scientific articles, provides criteria of the public debt evaluation, reasons importance of the public debt composition and presents the assessment model of the impact of public debt on social expenditure. Part Three gives structural and dynamic analysis of the Lithuanian public debt, evaluates the amount of public debt, according to the mentioned criteria for public debt assessment, and discusses the impact of the Lithuanian public debt on social spending and compares with that in other EU countries. The results of research show that the Lithuanian public debt is one of the smallest amounts borrowed by the EU countries, but it is rapidly increasing (during 2004-2010 tripled). Analysis of the impact of the public debt on social expenditure shows that the effect of public debt of health costs is negligible, while growth of public debt has positive impact on the costs of education and social security. Increasing spending for education is evaluated as acceptable, while a nonproportional increase of government expenditure on social security is not considered an effective investment and can cause serious problems in the future management of public debt.
Object of the research – public debt. Aim of the research – to evaluate the Lithuanian public debt, to assess its influence on social expenditure. Objectives of the research: 1. to present the concept of public debt and to discuss the factors, which influence government borrowing needs; 2. to define the debt burden and to determine the effect of public debt on economy; 3. to provide the public debt evaluation criteria; 4. to evaluate the Lithuanian public debt in respect to the situation in the EU countries according to the identified criteria; 5. to determine the impact of the Lithuanian public debt on social expenditure and to compare it with that in other EU countries. Research methods. Analysis and synthesis of scientific literature and legal documents, statistical data collection and analysis methods, comparative analysis, graphical representation techniques, logical analysis, regression analysis. Research results. Part One introduces the concept of public debt, analyzes the factors influencing government borrowing needs, importance of borrowing to economy and structured models of debt burden. Part Two, having analyzed various scientific articles, provides criteria of the public debt evaluation, reasons importance of the public debt composition and presents the assessment model of the impact of public debt on social expenditure. Part Three gives structural and dynamic analysis of the Lithuanian public debt, evaluates the amount of public debt, according to the mentioned criteria for public debt assessment, and discusses the impact of the Lithuanian public debt on social spending and compares with that in other EU countries. The results of research show that the Lithuanian public debt is one of the smallest amounts borrowed by the EU countries, but it is rapidly increasing (during 2004-2010 tripled). Analysis of the impact of the public debt on social expenditure shows that the effect of public debt of health costs is negligible, while growth of public debt has positive impact on the costs of education and social security. Increasing spending for education is evaluated as acceptable, while a nonproportional increase of government expenditure on social security is not considered an effective investment and can cause serious problems in the future management of public debt.
Security market in economically strong countries has deep developing traditions and acts strong role in financial system. Debt securities market helps to allocate the financial recourses between separate institutions. Also the strong role in financial system plays debts securities market, especially government bonds that help to form the lending resources effectively. Interest rate of government bonds is the main point, which turns rates of lending and borrowing. The incomes, which are gained after issuing debt securities, can be used to increase working capital, or finance the current assets. This study is going to analyse debt securities issued by Lithuanian Government and companies, which are issued for domestic market. The debt securities that are issued for outside market can be the theme of the other study. The object of this study is Lithuania's debt security market, their changes and tendencies since first emissions up to the year of 2006. The ambition of this study is to traverse debt securities market, securities circulating in it, analyse the market changes since 1994 to 2006 and make the main tendencies of debt securities market in Lithuania. To reach this ambition, these goals were set: Traverse debt securities market, it functions and place in Lithuania's financial system. To mark the main types of bond, set the main methods of evaluating and determining the profitability of the bonds. To set the main characteristics of treasury bills and saving sheets, find out the advantages and disadvantages of investing in them. To dispute the types of risk that debt securities experience. According the statistical information, traverse investors in debt securities market in Lithuania, set the main changes of them. Traverse the main issues of bonds, treasury bills, saving sheets during the year 1994 – 2006. According made analysis, make the main tendencies of Lithuania's securities market. The study consists of three sections. The first section is about debt securities market, types of debt securities market, main characteristics of debt securities, the methods of evaluating and determining the profitability of debt securities. The statistical information is analysed in the second section. And the main tendencies are made in the third one. . The structure of investors has changed during the analysed period of 1994-2006. The issues of debt securities, the types of them and other characteristics also have changed. After the made analysis we can say that the part or foreign investors declined. During the year of 1994 – 2006 the commercial banks were the main part of investors, who invested in debt securities. The problem of small part of natural persons as investors occurred. Treasury bills were started to issue in 1994, the bond – 1996. Saving sheets were issued during the year of 1999-2003. Lithuania's companies started to issue bonds on 1998. During the period of 1994 – 2006 the terms of debt securities has the tendency to become longer, thus the interest rate of debt securities declined together with the changes in the market.
Security market in economically strong countries has deep developing traditions and acts strong role in financial system. Debt securities market helps to allocate the financial recourses between separate institutions. Also the strong role in financial system plays debts securities market, especially government bonds that help to form the lending resources effectively. Interest rate of government bonds is the main point, which turns rates of lending and borrowing. The incomes, which are gained after issuing debt securities, can be used to increase working capital, or finance the current assets. This study is going to analyse debt securities issued by Lithuanian Government and companies, which are issued for domestic market. The debt securities that are issued for outside market can be the theme of the other study. The object of this study is Lithuania's debt security market, their changes and tendencies since first emissions up to the year of 2006. The ambition of this study is to traverse debt securities market, securities circulating in it, analyse the market changes since 1994 to 2006 and make the main tendencies of debt securities market in Lithuania. To reach this ambition, these goals were set: Traverse debt securities market, it functions and place in Lithuania's financial system. To mark the main types of bond, set the main methods of evaluating and determining the profitability of the bonds. To set the main characteristics of treasury bills and saving sheets, find out the advantages and disadvantages of investing in them. To dispute the types of risk that debt securities experience. According the statistical information, traverse investors in debt securities market in Lithuania, set the main changes of them. Traverse the main issues of bonds, treasury bills, saving sheets during the year 1994 – 2006. According made analysis, make the main tendencies of Lithuania's securities market. The study consists of three sections. The first section is about debt securities market, types of debt securities market, main characteristics of debt securities, the methods of evaluating and determining the profitability of debt securities. The statistical information is analysed in the second section. And the main tendencies are made in the third one. . The structure of investors has changed during the analysed period of 1994-2006. The issues of debt securities, the types of them and other characteristics also have changed. After the made analysis we can say that the part or foreign investors declined. During the year of 1994 – 2006 the commercial banks were the main part of investors, who invested in debt securities. The problem of small part of natural persons as investors occurred. Treasury bills were started to issue in 1994, the bond – 1996. Saving sheets were issued during the year of 1999-2003. Lithuania's companies started to issue bonds on 1998. During the period of 1994 – 2006 the terms of debt securities has the tendency to become longer, thus the interest rate of debt securities declined together with the changes in the market.
State debt: structure, process and influence to Lithuanian economy/ Master's Work in Business Equity Economics. Supervisor assoc. doc. dr. L. Šadžius. – Vilnius: Faculty of Economics and Finance Management, Mykolas Romeris University, 2009. – 89 p. The relevance of Master's work in Business Equity Economics is disclosed by the fact that state debt is one of the most talking points in modern day society, because it involves not only the state, the state government, but also the whole population, their social environment and future generations. The state debt and its coming reasons are important to science of economy, because it is an important factor to the growth of state economy. Performing the descriptive analysis it is pursued to identify the borrowing peculiarities of separated periods, to reveal the aspects and effectiveness of Lithuanian state debt management by analyzing the structure, changes of Lithuanian state debt and its influence to Lithuanian economy. During the analysis the hypothesis (H1) would be tested: The borrowing risk and the problem of state debt growth are managed wrongly. The object of the analysis is Lithuanian state debt. The main purpose of this master thesis is to analyze the theoretical aspects of state debt, the process of Lithuanian state debt by analyzing statistical and analytical data and to analyze the estimation and management problems of Lithuanian state debt influence to Lithuanian economy. While writing the master thesis, the statistical and analytical data about the Lithuanian state debt and state economy were analyzed. In different aspects the various science articles about the Lithuanian debt, its management and influence to economy problems were interpreted. The performed analysis partially confirms the raised hypothesis. The hypothesis only proves the problem concerning the growth of the state debt. Meanwhile, the risks related to the state debt are managed properly in Lithuania. The work consists of three main parts. The first part describes the theoretical aspects of state debt conception, structure, and main law acts, which regulates the administration and management of state debt. The second part is appointed to analyze the process of Lithuanian state debt. The third part describes the influence of Lithuanian state debt to economy and the peculiarities of the management of debt risks in accordance with presented models of estimation and management.