Revisiting the debt-growth nexus: Evidence from India

Q3 Economics, Econometrics and Finance

Economic Annals Pub Date : 2021-01-01 DOI:10.2298/eka2131151s

Pratibha Saini, K. Muniyoor

引用次数: 1

Abstract

The main purpose of this study is to examine the debt-growth nexus in India over the period 1984-2019 using Bayer-Hanck and Autoregressive Distributed Lag (ARDL) cointegration techniques. The findings of both techniques suggest the existence of a negative relationship between public debt and economic growth in the long run. The results also confirm the significant negative relationship between foreign exchange reserves and economic growth. Interestingly, the test results confirm the unidirectional causality running from public debt to economic growth in the case of India. From a policy perspective, reducing public debt is imperative to achieve long-term sustainable growth. Efforts should be made to circumvent the burden of burgeoning interest liabilities by generating a primary surplus, which will facilitate debt servicing and timely repayment of debt.

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重新审视债务增长关系:来自印度的证据

本研究的主要目的是使用拜耳-汉克和自回归分布滞后(ARDL)协整技术研究1984-2019年期间印度的债务增长关系。这两种方法的结果表明，长期来看，公共债务与经济增长之间存在负相关关系。研究结果也证实了外汇储备与经济增长之间存在显著的负相关关系。有趣的是，测试结果证实了印度公共债务与经济增长之间的单向因果关系。从政策角度来看，减少公共债务是实现长期可持续增长的必要条件。应努力通过产生基本盈余来避免日益增加的利息负债的负担，这将有利于偿债和及时偿还债务。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Economic Annals Economics, Econometrics and Finance-Economics, Econometrics and Finance (all)

CiteScore

0.90

自引率

0.00%

发文量

审稿时长

18 weeks

期刊介绍： Economic Annals is an academic journal that has been published on a quarterly basis since 1955, initially under its Serbian name of Ekonomski anali (EconLit). Since 2006 it has been published exclusively in English. It is published by the Faculty of Economics, University of Belgrade, Serbia. The journal publishes research in all areas of economics. The Editorial Board welcomes contributions that explore economic issues in a comparative perspective with a focus on transition and emerging economies in Europe and around the world. The journal encourages the submission of original unpublished works, not under consideration by other journals or publications. All submitted papers undergo a double blind refereeing process. Authors are expected to follow standard publication procedures [Instructions to Authors], to recognise the values of the international academic community and to respect the journal’s Policy.