The Causal Nexus between Public Debt and Economic Growth, A Multivariate Time Series Analysis: Experience from a SAARC Nation

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Subroto Dey
Subroto Dey
σ
Subrata Saha
Subrata Saha
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Dipti Bhowmik
Dipti Bhowmik
α Mawlana Bhashani Science and Technology University Mawlana Bhashani Science and Technology University

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The Causal Nexus between Public Debt and Economic Growth, A Multivariate Time Series Analysis: Experience from a SAARC Nation

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Abstract

This research paper enquires about the topicality of the dependence of Bangladesh’s economy on public debt. Several authors examined the bearings of public debt and economic growth in different counties and they provided mixed results about the direction of the relation. This study is conducted to find out the causal relationship between public debt and growth from the perspective of Bangladesh’s economy, and we use export as a control variable. We excerpted annual time series data from the World Bank website (WDI), IMF, and fiscal year 1986 to2018 data were gathered. One can treat budget deficit as the mother of public debt because the incarnation of the former usually precedents to the creation of the later. Several econometric tools have been behaved as Augmented Dickey-Fuller (ADF), Phillips -Peron (PP), Johansen co integration, Vector error correction model, and Granger casualty to explore short-run causality of public debt on growth.

References

17 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

Subroto Dey. 2020. \u201cThe Causal Nexus between Public Debt and Economic Growth, A Multivariate Time Series Analysis: Experience from a SAARC Nation\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 20 (GJHSS Volume 20 Issue E5): .

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Issue Cover
GJHSS Volume 20 Issue E5
Pg. 45- 52
Journal Specifications

Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

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GJHSS-E Classification: FOR Code: 149999
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v1.2

Issue date

June 24, 2020

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en
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This research paper enquires about the topicality of the dependence of Bangladesh’s economy on public debt. Several authors examined the bearings of public debt and economic growth in different counties and they provided mixed results about the direction of the relation. This study is conducted to find out the causal relationship between public debt and growth from the perspective of Bangladesh’s economy, and we use export as a control variable. We excerpted annual time series data from the World Bank website (WDI), IMF, and fiscal year 1986 to2018 data were gathered. One can treat budget deficit as the mother of public debt because the incarnation of the former usually precedents to the creation of the later. Several econometric tools have been behaved as Augmented Dickey-Fuller (ADF), Phillips -Peron (PP), Johansen co integration, Vector error correction model, and Granger casualty to explore short-run causality of public debt on growth.

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The Causal Nexus between Public Debt and Economic Growth, A Multivariate Time Series Analysis: Experience from a SAARC Nation

Subroto Dey
Subroto Dey Mawlana Bhashani Science and Technology University
Subrata Saha
Subrata Saha
Dipti Bhowmik
Dipti Bhowmik

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