Long-run Relationship Between Government Debt and Growth: the Case of Indonesia

Authors

  • Hefrizal Handra Department of Economics Andalas University Indonesia
  • Budi Kurniawan Department of Economics Andalas University

Abstract

This study examines long-run relationship between the government debt and economic growth in Indonesia. This study uses the Autoregressive Distributed Lag (ARDL) cointegration method. Employing a time series data from 1980 to 2017, this study reveals that there is a negative long-run relationship between the ratio of government debt to GDP and the economic growth. That means the growth of debt ratio to the GDP could lower the growth in a long term.Keywords: Economic Growth; Government Debt; Indonesia.JEL Classifications: C22, H63DOI: https://doi.org/10.32479/ijefi.8956

Downloads

Download data is not yet available.

Author Biographies

Hefrizal Handra, Department of Economics Andalas University Indonesia

Senior lecturer at Department of EconomicsAndalas University, Indonesia

Budi Kurniawan, Department of Economics Andalas University

Student

Downloads

Published

2019-12-17

How to Cite

Handra, H., & Kurniawan, B. (2019). Long-run Relationship Between Government Debt and Growth: the Case of Indonesia. International Journal of Economics and Financial Issues, 10(1), 96–100. Retrieved from https://econjournals.com/index.php/ijefi/article/view/8956

Issue

Section

Articles
Views
  • Abstract 273
  • PDF 384