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

Hefrizal Handra and Budi Kurniawan
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Hefrizal Handra: Department of Economics, Andalas University, Padang, West Sumatra, Indonesia.
Budi Kurniawan: Department of Economics, Andalas University, Padang, West Sumatra, Indonesia.

International Journal of Economics and Financial Issues, 2020, vol. 10, issue 1, 96-100

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: s Economic Growth; Government Debt; Indonesia. (search for similar items in EconPapers)
JEL-codes: C22 H63 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2020-01-12

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