ECONOMETRIC EVALUATION OF PUBLIC DEBT ON INFLATION: EVIDENCE FROM KOSOVO AND NORTH MACEDONIA

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Published: Dec 10, 2022
DOI: https://doi.org/10.47305/JLIA2283171m%20
Keywords:
Public Debt, Inflation, Time Series Models

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Ismail Mehmeti
University of Applied Sciences in Ferizaj, Faculty of Management, Kosovo
Gazmend Deda
University of Applied Sciences in Ferizaj, Faculty of Management, Kosovo

Abstract

The nexus between public debt and inflation has been continuously investigated, but after the pandemic, it has returned to the center of researchers' courtesy. Consequently, this research examines the influences of public debt, interest rates, trade openness, GDP growth, and foreign direct investments on inflation. The study employs secondary data from 2008 to 2021 and incorporates a mixed econometric technique such as the Ordinary Least Squares (OLS) and Arrellano-Bover/Blundell-Bond approach. The study's findings argue that public debt, interest rates, and trade openness significantly influence inflation, whereas GDP growth has a significantly negative impact. Because of the limited number of observations in the context of the research, we have not been able to evaluate the impact in the long term. The uniqueness and relevance of this research stem from its use of a combined approach, and in recent months, a continuous increase in inflation has been recorded throughout the world. The current findings and arguments inspire a productive discourse among academics, scholars, and policy-making entities.   

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How to Cite
Mehmeti, Ismail, and Gazmend Deda. 2022. “ECONOMETRIC EVALUATION OF PUBLIC DEBT ON INFLATION: EVIDENCE FROM KOSOVO AND NORTH MACEDONIA”. Journal of Liberty and International Affairs 8 (3):171-87. https://doi.org/10.47305/JLIA2283171m .
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Vol. 8 No. 3 (2022): Journal of Liberty and International Affairs
Section
Articles
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This work is licensed under a Creative Commons Attribution 3.0 Unported License.

Author Biographies

Ismail Mehmeti, University of Applied Sciences in Ferizaj, Faculty of Management, Kosovo

Ismail Mehmeti, PhD - from 2018 and now - is a professor at the University of Applied Sciences in Ferizaj - Kosovo, Faculty of Management where he teaches economic subjects and business law, from 2013 - 2018 he worked as a professor of economic subjects at "Pjeter Budi"College in Pristina, he completed his doctoral studies at the "St. Cyril and Methodius" University in Skopje, the "Justinjani I" Faculty - North Macedonia, in the direction "Economic Sciences and Business Law", has published books - biographies, scientific articles in journals indexed on various international platforms, has participated in national and international scientific conferences, has participated in seminars, congresses, various scientific tables following the trends of academic development at the national and international level.

Gazmend Deda, University of Applied Sciences in Ferizaj, Faculty of Management, Kosovo

Gazmend Deda, PhD - from 2020 to now - is a professor at the University of Applied Sciences in Ferizaj - Kosovo, Faculty of Management where he teaches economic subjects, from 2008/2020 he worked as a professor of economic subjects at Kacanik Vocational High School "Feriz Guri & Vellezerit Caka", completed his doctoral studies at the University of Agriculture (Agro Business) in Plovdiv, Bulgaria. Has participated in national and international scientific conferences, has participated in different international seminars, following the trends of academic development.