Ovidius University Annals: Economic Sciences Series (Aug 2023)
The Impact of Public Debt on Sustainable Development. The Romanian Case Study
Abstract
The study aims to analyze the impact of the ratio between the public debt and the gross domestic product on the Romanian economic development, for years 2000 - 2021 and to offer solutions for growth and sustainable development. Using a Vector Autoregression Model - VAR analysis model, the paper captures the causes that led to the rapid increase in debt in recent years, even decades, on the one hand, and on the other hand, the factors that influenced the negative evolution of macroeconomic indicators (inflation, unemployment etc.), which was not at all encouraging during the entire analyzed period. This fact is also possible thanks to the decisions and policies instituted by the government, rather based on analyzes and strategies, established only in the medium and short term, in a conjunctural context.
