The explanatory variables

model with outstanding public debt (D)

model with the Public debt service (DS)

Gross domestic product per capita lagged (GDPC)

−0.17***

−0.23***

Public debt (d)

−0.04**

0.02***

Population growth rate (POP)

−0.35***

−0.38***

The degree of trade openness (EXPORT)

−0.0078

−0.02

Investment rate (INVEST)

0.09***

0.085***

The Seigniorage (MM)

−0.13**

−0.13***

Inflation (INFL)

0.002***

0.002***

The real interest rate (TIR)

0.00015***

0.001***

AR (1)

1.2***

1.19***

AR (2)

−0.59***

−0.69***

R²

00.84

0.87

Durbin Watson

2.02

1.89

J-statistic (Sargan test)

6.82

7.22

Prob (J-statistic)

0.96

0.95

Number of Instruments

26

26