Public Debt and Economic Growth: Evidence from Bangladesh

Md. Saifuddin

Public Debt and Economic Growth: Evidence from Bangladesh

Md. Saifuddin §

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§ University of Chittagong

Public Debt and Economic Growth: Evidence from Bangladesh

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Abstract

Bangladesh has been relying heavily on public debt to meet its budget and balance of payment deficit since independence. This study examines how public debt in Bangladesh may influence its economic growth. For this purpose two models, Investment model and Growth model, have been used in this study. The investment model has been used to investigate the potential indirect effect of public debt on economic growth through its impact on investment. In the growth model direct relationship between public debt and economic growth has been examined. The study period is 1974 to 2014. Augmented Dickey-Fuller test has been used to diagnose whether time series data are non-stationary. A TSLS regression is run to estimate those models. The estimated results show that public debt is positively related to both investment and economic growth. The empirical findings also suggest that public debt has an indirect positive effect on growth through its positive influence on investment.

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24 Cites in Article

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Md. Saifuddin. 2016. "Public Debt and Economic Growth: Evidence from Bangladesh". Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 16 (GJMBR Volume 16 Issue 25 (B5)).

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GJMBR Volume 16 Issue 25 (B5)

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

Economic Growth investment public debt TSLS

Classification

GJMBR-B Classification JEL Code: F43

Submission ReceivedDecember 8, 2015
Peer Review Double Blind
Handling Editor
Accepted January 4, 2016
Published July 29, 2016

Version of record

v1.2

Issue date

July 29, 2016

Language

English

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Article Matrices

Total Score: 101

Country: Bangladesh

Subject: Global Journal of Management and Business Research - B: Economic & Commerce

Authors: Md. Saifuddin (PhD/Dr. count: 0)

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Publish Date: 2016 07, Fri

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