Changes in Public Borrowing in the OECD and the Impact Scale of Capital Productivity and Tax Burden

Abstract

This study aimed to determine the impact scale of some significant macro average criteria to evaluate increasing public borrowings expenditures in OECD countries. Different fiscal and economic dynamics constitute a meaningful effect mechanism at the global level regarding the public borrowing that has grown within the scope of the OECD in recent years. Undoubtedly, the main dynamics of these effects are the structural changes in the capital increases of OECD countries and the differences in capital productivity limits, which have a significant global impact related to OECD's average public incomes. Therefore, it is necessary and important to assess this fact with mutual correlation effects within the scope of average public borrowings due to the required elemental analyses of the changed levels of public borrowings. In other words, the different development levels of OECD countries and the changes in the capital efficiency values put forth that this fact directly related to the concerned public borrowings levels and public borrowings requirement levels intended for economic development, including fiscal practicing effects in this process. Therefore, it appears that these concerned variables average of OECD countries on the evaluation of the limits for the increase of public borrowings put forth a meaningful impact related to the ratio of investments levels and the effect of the tax burden. In brief, the proportion of investment and tax burden to GDP creates a meaningful convergent scale effect as it becomes more prominent with its impact on public borrowing. This phenomenon, which directly affects capital efficiency, reveals a significant positive impact on public borrowing.