Assessing Public Debt Sustainability: An Empirical Study of Nepal

Authors

  • Nar Bahadur Bista Department of Economics

Keywords:

Sustainability, Stationary, Public debt, Public expenditure, Cointegration

Abstract

Public debt is increasing tremendously year by year in Nepal. The economic growth rate is very low and other macroeconomic indicators are not so encouraging. In this context, there is a question of long run sustainability of public debt. If public expenditure and public revenue are I(0) i.e. stationary public debt is sustainable but if these are I(1) i.e. nonstationary and not co- integrated the public debt is said to be unsustainable. The revenue and expenditure time series data from fiscal year 1974/75 to 2009/10 are I (1) and there is no cointegration. This exhibits that the public debt is unsustainable in Nepal.

Key words: Sustainability; Stationary; Public debt; Public expenditure; Cointegration

Economic Journal of Development Issues

Vol. 9 and 10 (2008 & 2009) Combined Issue

Page: 77-84

 

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Abstract
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Author Biography

Nar Bahadur Bista, Department of Economics

Assistant Lecturer at the Department of Economics, Patan Multiple Campus, patandhoka, lalitpur, Nepal

Published

2010-06-18

How to Cite

Bista, N. B. (2010). Assessing Public Debt Sustainability: An Empirical Study of Nepal. Economic Journal of Development Issues, 9, 77–84. Retrieved from https://www.nepjol.info/index.php/EJDI/article/view/3292

Issue

Vol 9 & 10 (2008 & 2009)

Section

Articles

License

© Department of Economics, Patan Multiple Campus, Tribhuvan University