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Public debt and economic growth in India: A reassessment.
- Source :
- Economic Analysis & Policy; 2014, Vol. 44 Issue 3, p292-300, 9p
- Publication Year :
- 2014
-
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. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 03135926
- Volume :
- 44
- Issue :
- 3
- Database :
- Supplemental Index
- Journal :
- Economic Analysis & Policy
- Publication Type :
- Academic Journal
- Accession number :
- 109054055
- Full Text :
- https://doi.org/10.1016/j.eap.2014.05.007