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Domestic debt: boon or curse? A case of Pakistan

Author

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  • Syeda Azra Batool
  • Salyha Zulfiqar

Abstract

The prime reason of being none developed of the underdeveloped countries is the lack of funds. Domestic debt is an important source of bridging the gap of government financing. Proper and fair utilisation of public debt can increase economic growth. However, public debt is also a doubled-edged sword. The present study excavates and carves out the contribution of domestic debt in GDP of Pakistan and discloses that domestic debt has negative effect on GDP in Pakistan and has impeded economic growth. Simple regression technique has been utilised on the time series data. The failure of domestic debt to contribute in GDP compels the government to get rid of it, or it should be reviewed to allocate it properly.

Suggested Citation

  • Syeda Azra Batool & Salyha Zulfiqar, 2013. "Domestic debt: boon or curse? A case of Pakistan," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 6(4), pages 374-383.
    • Handle: RePEc:ids:ijtrgm:v:6:y:2013:i:4:p:374-383
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    Cited by:

    1. Debi Prasad Bal & Badri Narayan Rath, 2018. "Do Macroeconomics Channels Matter for Examining Relationship Between Public Debt and Economic Growth in India?," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 16(1), pages 121-142, December.
    2. Debi Prasad Bal & Badri Narayan Rath, 2016. "Is Public Debt a Burden for India?," Economic Papers, The Economic Society of Australia, vol. 35(2), pages 184-201, June.

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