IDEAS home Printed from https://ideas.repec.org/a/asi/aeafrj/v7y2017i10p1005-1013id1613.html
   My bibliography  Save this article

Impact of Foreign Debt on Economic Growth: Evidence from Pakistan

Author

Listed:
  • Abdur Rauf
  • Amara Akram Khan

Abstract

This study analyzes the impact of foreign debt on economic growth of Pakistan, using annual time series data from1972 to 2013. The research question is tested through ARDL econometric framework and the estimated result shows that foreign debt exerts significant negative impact on economic growth which confirms the existences of debt overhang in Pakistan. Both physical and human capital has strong association with economic growth of Pakistan. The coefficient of Error Correction Term (ECT) suggested that any deviation from the long term inequality is corrected by a moderate speed over each year. Significant ECT is further proof of the existence of stable long run relationship. It can be suggested that the proper management of debt may help the government in attaining the desirable growth of the economy.

Suggested Citation

  • Abdur Rauf & Amara Akram Khan, 2017. "Impact of Foreign Debt on Economic Growth: Evidence from Pakistan," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 7(10), pages 1005-1013.
    • Handle: RePEc:asi:aeafrj:v:7:y:2017:i:10:p:1005-1013:id:1613
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5002/article/view/1613/2356
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nabila Khurshid & Hamza Sharif & Mosab I. Tabash & Basem Hamouri & Asma Fiaz & Fozia Munir, 2023. "Analyzing the Impact of Foreign Capital Inflows and Political Economy on Economic Growth: An Application of Regime Switching Model," Economies, MDPI, vol. 11(7), pages 1-17, June.
    2. Subrata Deb Nath & Md. Rezaul Karim & Faruk Hossain & Mohammed Main Uddin, 2023. "Impact of External Public Debt on Economic Growth: A Case Study of Bangladesh," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 14(3), pages 01-08, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:v:7:y:2017:i:10:p:1005-1013:id:1613. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5002/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.