Abstract

BARCELATA CHAVEZ, Hilario  and  VELA MARTINEZ, Rafael. Subnational Public Debt and Local Economic Development. Econ: teor. práct [online]. 2019, n.51, pp.165-199.  Epub Oct 29, 2019. ISSN 2448-7481.  https://doi.org/10.24275/etypuam/ne/512019/barcelata.

The purpose of this paper is to confirm that resources obtained by subnational governments by means of public debt do not contribute to state economic development.

To this end, two state typologies were developed, the first taking as a grouping criterion the magnitude of debt as a proportion of the GDP, and the second considers the rate of debt growth in national currency.

It was confirmed that there is no relationship between debt increase and economic growth, nor was a correspondence between debt and poverty observed.

Keywords : subnational debt; local development; economic growth; regional economics; public finances.