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Distributional Crowding Out Effects of Public Debt on Private Investment in Developing Economies (Inglés)

The Covid-19 pandemic, followed by financial tightening due inflationary pressure, has raised public debt in developing economies as governments grapple with public health investments to curb the pandemic and collapse in revenues due to slower economic activity. The rise in debt may further disrupt the formal private sector in developing economies. Using two to three waves of panel firm-level data across developing economies, this study finds that...
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