Public Debt and Economic Growth in India
The New Evidence
Bibliographic Data
| ID | 13083289 |
|---|---|
| Authors | Bhanu Pratap Singh (0000-0002-1757-9763, Economics Section, Mahila Mahavidyalaya, Banaras Hindu University, Varanasi, Uttar Pradesh, India, corresponding author), Sujit Kumar (0000-0003-2875-0586, Banaras Hindu University) |
| Year | 2022 |
| Volume | 15 |
| Issue | 3 |
| Pages | 429-446 |
| Publication date | 2022-12-19 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Millennial Asia (JOURNAL) |
| Journal identifiers | ISSN: 2321-7081 • E-ISSN: 0976-3996 |
| Publisher | SAGE Publishing (PUBLISHER • US) |
| DOI | 10.1177/09763996221136908 |
| OpenAlex | W4313404124 |
| Language | EN |
| Citations received | 2 |
| References cited | 38 |
The study gives new evidence on the effects of public debt on economic growth in India with key macroeconomic indicators from 1980 to 2019. In the past decade, and after the COVID-19 pandemic, there is a substantial rise in public debt, which reached 90% of the GDP in April 2021. Therefore, it is imperative to study the impact of different public debt sources on the Indian economy to help policymakers frame informed debt management policies. The long-run equilibrium relationship and cointegrating coefficients are calculated using Johansen cointegration and fully modified ordinary least square techniques. Toda and Yamamoto’s (1995) Granger causality test is used as a short-run diagnostic test for the long-run equilibrium relationship. The study’s major findings suggest that domestic debt, total factor productivity (TFP) and exports are the major determinants of economic development in the long run. In contrast, economic prosperity determines the growth of external debt, debt service payments and TFP in the short run. It is recommended that the government should control and channel public debt productively for favourable growth effects
Cointegration · Debt · Debt levels and flows · Debt service coverage ratio · Debt-to-GDP ratio · Econometrics · Economics · Error correction model · External debt · Granger causality · Internal debt · Johansen test · Macroeconomics · Monetary economics · Productivity · Short run · Total factor productivity · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Monetary Policy and Economic Impact
The Works and Correspondence of David Ricardo (The works and correspondence of David Ricardo)
Statistical Inference in Instrumental Variables Regression with I(1) Processes
Statistical inference in vector autoregressions with possibly integrated processes
Does high public debt consistently stifle economic growth? A critique of Reinhart and Rogoff
Testing for a unit root in time series regression
The Next Generation of the Penn World Table
Distribution of the Estimators for Autoregressive Time Series with a Unit Root
Trade and Growth at Different Stages of Economic Development
The Impact of Public Debt on Economic Growth
Assessment of Public and External Debt Sustainability Using Debt Dynamics Equation Approach
Institutional quality and poverty reduction in BRICS
Determinants of corporate borrowing
Financing vs. forgiving a debt overhang
Public debt and economic growth
Are Government Bonds Net Wealth
Barro on the Ricardian Equivalence Theorem
The Ricardian Approach to Budget Deficits
Exports and Economic Growth
| Unique citing works | 2 |
|---|---|
| Citations per year | 0,67 |
| Citation span | 2023 - 2023 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 2 |