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Public Debt and Economic Growth: An Empirical Evidence from Pakistan

Zohaib, Muhammad LU (2020) NEKN01 20201
Department of Economics
Abstract
This paper examines the relationship between public debt and economic growth of Pakistan. For this purpose, the study employs annual time series data of Pakistan from 1976 to 2018. Auto Regressive Distributed Lag (ARDL) approach is utilized to investigate the short as well as long run relationships between the variables. Results of the Error Correction Model (ECM) confirm that external debt, debt servicing and inflation is negatively related with economic growth whereas domestic debt, investment and openness depicts a positive relationship with economic growth both in long and the short run. It is recommended that external debt should be discouraged, and government should emphasize on financing through the domestic debt sources.
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author
Zohaib, Muhammad LU
supervisor
organization
course
NEKN01 20201
year
type
H1 - Master's Degree (One Year)
subject
keywords
Public Debt, Economic Growth, Domestic debt, External debt
language
English
id
9026613
date added to LUP
2020-08-29 10:37:03
date last changed
2020-08-29 10:37:03
@misc{9026613,
  abstract     = {{This paper examines the relationship between public debt and economic growth of Pakistan. For this purpose, the study employs annual time series data of Pakistan from 1976 to 2018. Auto Regressive Distributed Lag (ARDL) approach is utilized to investigate the short as well as long run relationships between the variables. Results of the Error Correction Model (ECM) confirm that external debt, debt servicing and inflation is negatively related with economic growth whereas domestic debt, investment and openness depicts a positive relationship with economic growth both in long and the short run. It is recommended that external debt should be discouraged, and government should emphasize on financing through the domestic debt sources.}},
  author       = {{Zohaib, Muhammad}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Public Debt and Economic Growth: An Empirical Evidence from Pakistan}},
  year         = {{2020}},
}