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

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  • Ramesh Chandra Paudel
  • Nelson Perera

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.

Suggested Citation

  • Ramesh Chandra Paudel & Nelson Perera, 2009. "Foreign Debt, Trade Openness, Labor Force and Economic Growth: Evidence from Sri Lanka," The IUP Journal of Applied Economics, IUP Publications, vol. 0(1), pages 57-64, January.
    • Handle: RePEc:icf:icfjae:v:08:y:2008:i:1:p:57-64
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    Cited by:

    1. Nguyen Van Bon, 2019. "The Role Of Institutional Quality In The Relationship Between Fdi And Economic Growth In Vietnam: Empirical Evidence From Provincial Data," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(03), pages 601-623, June.
    2. Mehmet BÖLÜKBAŞ & Osman PEKER, 2017. "Ticari Dışa Açıklık ve Dış Ticaret Hadleri Dış Borçlanma Üzerinde Etkili mi? Türkiye İçin Bir Analiz," Sosyoekonomi Journal, Sosyoekonomi Society, issue 25(34).
    3. Sayef Bakari & Mohamed Mabrouki & Abdelhafidh Othmani, 2018. "The Six Linkages Between Foreign Direct Investment, Domestic Investment, Exports, Imports, Labor Force And Economic Growth: New Empirical And Policy Analysis From Nigeria," Journal of Smart Economic Growth, , vol. 3(1), pages 25-43, Juin.
    4. Shah, Md. Mahmud Hasan & Pervin, Shahida, 2012. "External public debt and economic growth: empirical evidence from Bangladesh, 1974 to 2010," MPRA Paper 55407, University Library of Munich, Germany.
    5. Maria Khan, 2021. "Effect of Natural Resources on Economic Growth in Pakistan: A Time Series Analysis," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 9(1), pages 29-47, March.
    6. Cahyadin, Malik & Sarmidi, Tamat, 2019. "The Impact of Foreign Direct Investment, Labour Force, and External Debt on Economic Growth in Indonesia and Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 53(1), pages 171-185.
    7. Wang, Yanjun & Li, Yongfang, 2023. "Chinese economic growth and sustainable development: Role of artificial intelligence and natural resource management," Resources Policy, Elsevier, vol. 85(PB).
    8. Ramesh C. Paudel, 2014. "Liberalisation reform and export performance of India," ASARC Working Papers 2014-03, The Australian National University, Australia South Asia Research Centre.

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