Long-run Relationship Between Government Debt and Growth: the Case of Indonesia
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.8956Downloads
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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
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