Structure of public debt in the Western Balkan Countries

AuthorKestrim Avdimetaj
PositionUniversity College 'Fama' Kosovo
Pages51-59
Vo
l.
5
N
o
. 2
Jul
y
, 201
9
ISS
N 2410-391
8
A
cces online at www.ii
p
ccl.or
g
5
1
A
cademic Journal o
f
Business,
A
dministration, Law and Social Sciences
II
PCCL Publishin
g
, Graz-
A
ustria
Structure of
p
ublic debt in the Western Balkan Countries
PhD (C.) Kestrim Avdimeta
U
niversit
y
College “Fama“ Kosov
o
Abs
tr
ac
t
The main purpose of this scienti c research is to analyze the structure of the public debt in the
Western Balkan Countries. This research is based on the principle of originality, which makes
a
n a empt to show the structure of the public debt during the time period from 1995 until
2017. For dra ing of this scienti c research we will use an all-inclusive methodology, using
various research methods in order that the results have a high scienti c credibility, such as:
t
he narrative method, the comparative method, as well as the trend analysis.
I
n this study,
I
have based myself on the data from the World Bank, as well as the data from
I
nternational
M
onetary Fund. The main ndings in the research demonstrate that there is a distinction in
t
he structural aspect of the public debt in the countries of the West Balkans, compared to other
countries in transition in
E
urope. More concretely, in such countries the threshold or be er
s
aid the optimal limit of the public debt is lower than in countries in transition in
E
ast
E
urope
a
nd in Central
E
urope. The results gained through this study will be very important to the
leadin
g
institutions of the Western Balkan Countries. Some of the Limits of this work consist
of the fact that no other
E
uropean countries in transition have been included, and to compare
t
h
e
m w
i
th th
e
W
e
st
e
rn B
a
lk
a
n c
ou
ntr
ie
s
.
K
e
y
words
:
Public Debt, the Structure of the Debt, the Western Balkans.
I
ntr
oduc
t
io
n
T
here is a lot o
f
scienti
c research which has anal
y
zed the im
p
act o
f
the
p
ublic debt
i
n
d
eve
l
o
p
e
d
countries (C
h
ec
h
erita an
d
Rot
h
er 2010, Cecc
h
eti et a
l
. 2011, Rein
h
art
a
nd Rogo
f
2010, Mencinger,
A
ristovnik, Verbic 2015). However, there are
f
ew studies
which have treated the
p
ublic debt in countries in transition or the countries o
f
th
e Western Ba
lk
ans (
U
zun 2012, Moana 2008,
A
ti
q
ue an
d
Ma
l
i
k
2012). T
h
e stu
dy
app
roach o
f
the theme o
f
this work titled “The Structure o
f
the Public Debt in the
countries o
f
the Western Balkans” re
p
resents a s
p
ecial interest both theoretical and
p
ractical. Firstl
y
, the stud
y
will o
er a general review on the
p
ublic debt and its
characteristics.
A
nd secondl
y
, the stud
y
will o
er evidence ex
p
ressed in the GDP
p
ercentage about the structure o
f
the
p
ublic debt in the countries o
f
the Western
Balkans during the time
p
eriod
f
rom 1995 until 2017.
A
ccording to the bibliogra
p
h
y
,
e
conomists
f
avored the
p
ublic debt in the 18
th
centur
y
, re
f
erring to the
f
act that the
p
ublic debt had a
p
ositive e
ect, and this
f
avor was a reason o
f
the doctrine o
f
that
t
ime. However
,
in t
h
e 19
th
centur
y
, the role o
f
the state was limited within its borders,
onl
y
with some minimal
f
unctions in economic as
p
ect. This was the view
p
oint o
f
c
l
assica
l
economists w
h
o
b
e
l
ieve
d
in “Laissez Faire”
p
o
l
ic
y
. T
h
ese economists
h
a
d
t
he o
p
inion that the
f
unctions o
f
the state should be minimized, and the government
s
hould onl
y
guard the inner law and order, as well as
p
rotect the countr
y
f
rom an
agg
ression.

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