RT Journal Article
SR Electronic
A1 Blížkovský, Petr
A1 Střelec, Luboš
A1 Blížkovská, Kateřina
T1 The "Three-D-Relationship": Do Democracy and Development Lead to Increased Debt?
JF European Journal of Business Science and Technology
YR 2020
VO 6
IS 1
SP 21
OP 36
DO 10.11118/ejobsat.2020.003
UL https://ejobsat.cz/artkey/ejo-202001-0001.php
AB The paper aims to test the research hypothesis of whether more democratic and economically developed countries tend to have higher public debts (the "Three-D-Relationship") or not. The hypothesis was tested on a panel of 91 countries over the period from 2012 to 2016 using a two way analysis of variance where debt was the dependent variable and regime type and income levels were factors. The results only partially confirmed the hypothesis. Higher democratic standards did correlate with higher debt levels. Similarly, higher income levels also correlated with bigger debt burden. Both "democracy" and "development" combined was not linked to higher debt levels.