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


Related Articles

  • Export Instability, Income Terms of Trade Instability and Growth: Evidence from Pakistan. Bilquees, Faiz; Mukhtar, Tahir // Journal of Economic Cooperation & Development;2012, Vol. 33 Issue 1, p59 

    The study explores the causal relationship among export instability, income terms of trade instability and economic growth in Pakistan. By using the cointegration analysis and vector error correction model for the period 1960 to 2008, the study demonstrates that there exists a long run...

  • INFLATION AND STOCK PRICES. Aburachis, A. T.; Taylor, Daniel R. // Journal of the Academy of Business & Economics;2012, Vol. 12 Issue 5, p13 

    The classic proposition that stock prices can be expected, in the long-run, to rise in proportion to the increases in the price level has been challenged by several researchers suggesting there is a negative relationship between stock returns and inflation. Since the issue can be decided only...

  • Ä°kiz Açık Ä°liÅŸkisi Kriz Öncü Göstergelerini Etkiler mi? 2008 Küresel Kriz Işığında ABD ve Türkiye Analizi. Deveci, Tülin Tunç; Değirmen, Süleyman // Anadolu University Journal of Social Sciences;2013, Vol. 13 Issue 2, p1 

    Many theoretical and empirical researches have been written on the issue of crises often experienced by developing countries since the early 1990s. Moreover, the 2007 crisis started in the US has taken its place as a global crisis in the literature because of the most spreading crisis over the...

  • Türkiye’de Cari Açığın Belirleyicilerinin Ampirik Analizi. GACENER ATIŞ, Aydanur; SAYGILI, Fatih // Sosyoekonomi;Jan-Jun2014, Vol. 21 Issue 1, p87 

    The purpose of this study is to identify the determinants of the current account deficit in Turkey and to analyze the relationship between explanatory variables and the current account deficit. The analyses in this paper, aim to determine possible short and long terms effects of these variables...

  • Empirical Analysis on Relationship Between Urbanization Level and Employment Rate Based on VAR Model. Xuepeng Guo; Haimin Wei // Applied Mechanics & Materials;2014, Issue 644-650, p5897 

    The study conducts analytical research through cointegration test and granger causality based on data regarding urbanization and employment level from 1978 to 2012 in Shaanxi Province. To be specific, cointegration test reveals long-term equilibrium between the urbanization level and employment...

  • Supplementary Materials.  // Sustainability (2071-1050);Feb2014, Vol. 6 Issue 2, pS1 

    The table of contents for the February 2014 issue of "Sustainability" is presented.

  • Linkages among Equity Indices and Returns in Selected Asian Countries and the US. Nguyen, Chu V. // Journal of Knowledge Globalization;2012, Vol. 5 Issue 2, p47 

    This article examines the linkages among equity indices and returns in four selected Asian countries and the US. Granger causality tests based on the Vector Error Correction Model (VECM) reveal strong bidirectional Granger causality between the changes in equity indices or returns on market...

  • Multivariate-based Granger causality between financial deepening and poverty: the case of Pakistan. Rehman, Ijaz; Shahbaz, Muhammad // Quality & Quantity;Nov2014, Vol. 48 Issue 6, p3221 

    This paper deals with the empirical investigation of causal relationship between financial deepening, economic growth and poverty reduction using quarter frequency data in case of Pakistan over the period of 1972-2011. We applied the autoregressive distributed lag model bounds testing approach...

  • Coint�gration et Causalit� Entre Croissance �conomique et D�veloppement Financier: Pays de la Cedeao et de l'uemoa. Lansana, Bangoura // International Research Journal of Finance & Economics;2012, Issue 91, p78 

    This article focuses on the theory of cointegration Johansen, Engle and Granger of Granger causality to analyze the relationship between economic growth and financial development in countries of ECOWAS and WAEMU on the period 1980 to 2010. It allows inferring lessons and deducting the...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics