Impact of Public Debt on Economic Growth: An Empirical Investigation From South Asian Countries

Abstract

Purpose of the study: This study aims to analyze the short-run and as well as long-run effects of public debt on the economy of South Asian countries. And to resolve problems in managing and servicing their massive public debt obligations.
 Methodology: For econometrically investigation, panel data has been used for the era of 1990-2019. For obtaining econometric outcomes, we applied the Fixed Effect Model and PMG/ Panel ARDL.
 Main Findings: The results revealed that public debt negatively affected the economic performance of these countries. This effect is adverse both in short as well as in long period.
 Applications of this study: The study can be effective for simultaneous achievement of the desirable level of economic growth and public debt stock seems to be difficult and could remain elusive if some serious measures have not been taken.
 Novelty/Originality of this study: The study recommends the efficient and productive utilization of borrowed funds to avoid their negative repercussions.

Strategy for Accelerating Poverty Reduction in Klungkung Regency, Bali

“…In general, the increase in the Gini index in Klungkung Regency is due to the increase in income in the tourism sector, which is more enjoyed by investors, and the decrease in the contribution of agriculture to gross regional income, which is more in the group of 40% of the population with the lowest income so that inequality increases. In 2020 the Gini index of Klungkung Regency will drop to (Hameed et al, 2021). Income inequality will create disparities, create economic burdens, and affect the human development index (Odusanya et al, 2021).…”