This paper provides an empirical analysis of the relationship between debt and national output mediated by a measure of the quality of state governance. Using WGIs dataset of 106 countries for the period 1996–2015, the paper analyzes the mediated effect of governance on debt-growth relationship. For this purpose, we use the fixed effect (LSDV) and system GMM estimation technique in order to overcome the possible problem of endogeneity. Results show the non-linear pattern between public debt and economic growth via governance. Although, public debt has negative impact on economic growth, but the results are statistically positive and significant when public debt is interacted with governance, which confirms that governance is a channel by which public debt influences economic growth. Moreover, we calculate the threshold of governance which shows that the public debt has positive impact on economic growth when the governance level is higher than the threshold and adversely affects the economic growth in the case of low level of governance than threshold. Evidence from this study reveals the fact that governance plays a mediating role in debt-growth relationship as there is a pattern of complementarity between public debt and governance: the higher the level of governance, the lesser the adverse effect of public debt on economic growth.

This study attempts to investigate the mediating role of institutional quality on the relationship between public debt and economic growth in Pakistan spanning 1996–2020. Time series data on all six World Bank World Governance indicators of institutional quality is used in the empirical analysis. Findings of the autoregressive distributed lag (ARDL) bounds testing technique and error correction method (ECM) confirmed the existence of cointegration among variables of interest. The short-run results indicate that public debt has a favorable association with economic growth, while the relationship is found to be detrimental in the long run. Furthermore, the combined effect of public debt and institutional quality indicators revealed the significant positive association with economic growth, suggesting that better institutional quality can contribute to mitigate the negative impact of public debt on economic growth in Pakistan.

The Netherlands, recognized as a leader in promoting circular economy principles, is actively implementing laws, incentives, and public–private collaborations to reduce raw material consumption by minimizing extraction and encouraging sharing and reuse. Emphasizing the durability and extended use of materials and goods is crucial in this transition. This study investigates the long-term and causal impacts of circular economy practices, technological innovation, environmental tax policies, economic instability, and industrialization on greenhouse gas (GHG) emissions in the Netherlands, covering the period from the first quarter of 2010 to the fourth quarter of 2022. Employing advanced econometric techniques, including the bounds test of co-integration, autoregressive distributed lag models, wavelet coherence analysis, and gradual shift causality tests, the study reveals that circular economy practices, technological advancements, and environmental taxation significantly reduce GHG emissions in both the short-run and the long-run. Conversely, economic instability and industrialization are found to contribute positively to GHG emissions. The wavelet coherence analysis further highlights the substantial interplay between GHG emissions and the independent variables studied. Based on these findings, the study underscores the need for the Netherlands to intensify efforts in reducing GHG emissions, curbing the use of virgin materials in construction, and investing in recycling technologies to advance its circular economy goals.