The institutionalized correlation between Debt and GDP in Argentina

Open Access
Neyhart, Julia Louise
Area of Honors:
Bachelor of Science
Document Type:
Thesis Supervisors:
  • Yelena Larkin, Thesis Supervisor
  • Dr. Brian Spangler Davis, Honors Advisor
  • Dr. Brian Spangler Davis, Faculty Reader
  • Finance
  • Public Debt
  • Argentina
  • GDP
As the world recovers from the Great Recession of 2008, economists have turned their attention to the increasing burden that public debt places on GDP. For the first time, researchers have the information available to study the relationship between these two economic indicators. However, research on emerging markets remains rare, and no study has been done solely on one country following a default, such as Argentina. Unfortunately, these countries are more likely to need information on the correlation between these two factors. GDP growth in countries with a history of high debt may be more susceptible to growth constrictions. Following its 2002 default, Argentina completely restructured its public debt to end any negative correlation between its high debt and economic growth. This thesis will seek to investigate whether or not the debt restructuring in 2005 successfully ended any negative correlation between Argentina’s GDP and public debt. This information could have implications for many historically debt-burdened countries.