Foreign Debt, Trade Openness, Labor Force and Economic Growth: Evidence from Sri Lanka

Ramesh Chandra Paudel () and Nelson Perera

Icfai University Journal of Applied Economics, 2009, vol. VIII, issue 1, pages 57-64

Abstract: This study examines the role of foreign debt, trade openness and labor force in the economic growth of Sri Lanka, by employing the Johansen maximum likelihood approach of cointegration. It analyzes the data for the period, 1950-2006. The study finds that there is a cointegration relationship between economic growth and foreign debt, trade openness and labor force. Further the results suggest that in the long run, labor force, trade openness and foreign debt have a positive impact on economic growth of Sri Lanka.

Date: 2009

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Persistent link: http://EconPapers.repec.org/RePEc:icf:icfjae:v:08:y:2008:i:1:p:57-64

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