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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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    1. repec:sos:sosjrn:170411 is not listed on IDEAS
    2. 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.
    3. 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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