Title: Domestic debt: boon or curse? A case of Pakistan

Authors: Syeda Azra Batool; Salyha Zulfiqar

Addresses: Department of Economics, Bahauddin Zakariya University, Multan, Pakistan ' Department of Economics, Bahauddin Zakariya University, Multan, Pakistan

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.

Keywords: domestic debt; GDP; gross domestic product; economic growth; Pakistan; government finance; developing countries; public debt.

DOI: 10.1504/IJTGM.2013.056732

International Journal of Trade and Global Markets, 2013 Vol.6 No.4, pp.374 - 383

Published online: 30 Sep 2014 *

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