Does External Debt Causes Economic Growth: A Case Study of Pakistan

Nawaz, Mohsin; Qureshi, Maria; Awan, Naveed Wahid
March 2012
Romanian Economic Journal;Mar2012, Vol. 15 Issue 43, p131
Academic Journal
Case Study
This study attempts to examine the long run and short run dynamics of external debt and economic growth in Pakistan. For this purpose, we employed the Johansen cointegration test and Granger causality test. The empirical analysis cover the study span from 1980 to 2010, shows the evidence of long run relationship between external debt and economic growth. In the short run, there is bidirectional causality exist between external debt and economic growth


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