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http://dspace.bits-pilani.ac.in:8080/jspui/xmlui/handle/123456789/8933| Title: | Public debt and economic growth in India: A reassessment |
| Authors: | Bal, Debi Prasad |
| Keywords: | Economics and Finance Domestic debt External debt Auto regressive distributed lag (ARDL) TFP growth Economic Growth Debt service |
| Issue Date: | Aug-2014 |
| Publisher: | Elsevier |
| Abstract: | This paper examines the effect of public debt on economic growth in India between 1980 and 2011. Using the autoregressive distributed lag ARDL model, the paper traces a long-run equilibrium relationship between public debt and economic growth. The error correction model (ECM) results show that central government debt, total factor productivity (TFP) growth, and debt-services are affecting the economic growth in the short-run, and that the results are consistent with our a priori expectation. It is recommended that the government should follow the objective of inter-generational equity in fiscal management over the long term in order to stabilize debt-GDP ratio, particularly, after the global financial crisis. |
| URI: | https://www.sciencedirect.com/science/article/pii/S0313592614000289 http://dspace.bits-pilani.ac.in:8080/xmlui/handle/123456789/8933 |
| Appears in Collections: | Department of Economics and Finance |
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