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JOVELYN M. CANTINA
Article ID: sjahss-1-11-3-15-23
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Impact of External Debt on GDP of Bangladesh
Keywords:
External Debt, GDP, Granger Causality, Johansen Co-integration, BangladeshAbstract
This study is to explore the external debt’s impact on GDP in Bangladesh. Since the independence external debt (ED) is increasing every. This objective of this paper is to investigate the link between external debt and GDP considering the data set for the period of 1972 to 2021 using time series econometric technique. The findings indicate a positive, statistically significant impact of external debt on GDP. The Johansen co-integration analysis implying that the GDP and ED have a long-term equilibrium association. Moreover, Granger causality test suggests that there is a bidirectional causality exist between GDP and ED in Bangladesh. Policy suggestions from this study revealed that as a developing country Bangladesh government may borrow foreign debts for the massive economic development. But government should use it properly for the development of the country especially for productive purposes.
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Published on: 16-11-2024
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How to Cite
Islam, M. A., & Hossain, F. (2024). Impact of External Debt on GDP of Bangladesh. Sprin Journal of Arts, Humanities and Social Sciences, 3(11), 47–50. https://doi.org/10.55559/sjahss.v3i11.390
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