• Dinci J. Penzin Central Bank of Nigeria & Nile University
  • Afees Salisu Centre for Econometric & Allied Research, University of Ibadan
  • Benedict N. Akanegbu Nile University
Keywords: Debt, Investment, Nonlinearity, Threshold regression models


We examine the effect of public debt on private investment in selected emerging economies. Using a panel threshold regression model, we estimate a threshold value of about 3 percent, on average, below which public debt stimulates private investment. Our additional analysis involving selected developed economies suggests that the crowding out effect is less evident relative to the emerging economies as higher public debt stocks do not seem to significantly undermine their private investments. These results have implications for debt sustainability and maintaining a reasonable public debt–GDP ratio is crucial for sustainable investment growth.


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How to Cite
Penzin, D., Salisu, A., & Akanegbu, B. (2022). A NOTE ON PUBLIC DEBT-PRIVATE INVESTMENT NEXUS IN EMERGING ECONOMIES. Buletin Ekonomi Moneter Dan Perbankan, 25(1), 25-36. https://doi.org/10.21098/bemp.v25i1.1988

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