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

Authors

  • Hefrizal Handra Department of Economics Andalas University Indonesia
  • Budi Kurniawan Department of Economics Andalas University

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: Economic Growth; Government Debt; Indonesia.

JEL Classifications: C22, H63

DOI: https://doi.org/10.32479/ijefi.8956

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Author Biographies

Hefrizal Handra, Department of Economics Andalas University Indonesia

Senior lecturer at Department of EconomicsAndalas University, Indonesia

Budi Kurniawan, Department of Economics Andalas University

Student

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Published

2019-12-17

How to Cite

Handra, H., & Kurniawan, B. (2019). Long-run Relationship Between Government Debt and Growth: the Case of Indonesia. International Journal of Economics and Financial Issues, 10(1), 96–100. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/8956

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