Luthuli, Sanda Siphosakhe2020-12-042020-12-042020https://hdl.handle.net/10539/30285A research report submitted in fulfilment of the requirements for the degree of Masters of Management in Finance and Investment (MMFI) to the Faculty of Commerce, Law and Management, Wits Business School, University of the Witwatersrand, Johannesburg, 2020This study investigates if there is fiscal space in emerging and developing market economies. We use an IS growth equation which is augmented with a non-linear debt term to estimate the turning point below which debt is positively related to growth and above which debt is negatively related to growth. We find that this turning point is on average 62.2% of sovereign debt to GDP. The implication of this is that policy makers should use such a turning point in assessing the fiscal financial sustainability of their economies. This turning point methodology should be used by policy makers to complement other existing methodologies in their fiscal sustainability assessment.enIS curveSovereign debeconomic growthdebt sustainability thresholdSDG-8: Decent work and economic growthDissertationUniversity of the Witswatersrand, Johannesburg