Does public debt stifle economic growth and increase income inequality in Belt & Road countries? The Role of Corruption

Faisal Mehmood, Wang Bing, Hameed Khan


This study seeks to investigate the role of corruption in the relationship between public debt and economic growth in Belt & Road countries during 1996-2017 by applying the generalized method of moment (GMM). Using grouped and ungrouped samples; the results reveal that public debt plays a significant and negative role in economic growth. Corruption also plays a significant and negative role in economic growth. The interaction terms of public debt and corruption play a significant and negative role in economic growth. Moreover; several robustness checks like fixed and random effect models also confirm the results of the  GMM approach. The inclusion of more control variables also confirms the baseline estimation. The impact of Belt & Road initiative on economic growth is significantly positive. Several policy recommendations can be drawn from this study. The reduction of the adverse effect of public debt and improvement in economic growth can be brought by applying measures that curb corruption and enhance economic collaboration with other economies.

Keywords: Public debt, BRI, growth

JEL Classification: C33; H63; O43

DOI: 10.7176/EJBM/11-33-15

Publication date: November 30th 2019

Full Text: PDF
Download the IISTE publication guideline!

To list your conference here. Please contact the administrator of this platform.

Paper submission email:

ISSN (Paper)2222-1905 ISSN (Online)2222-2839

Please add our address "" into your email contact list.

This journal follows ISO 9001 management standard and licensed under a Creative Commons Attribution 3.0 License.

Copyright ©