Foreign Debt, Trade Openness, Labor Force and Economic Growth: Evidence from Sri Lanka

Authors

Ramesh Chandra Paudel, University of WollongongFollow
Nelson Perera, University of WollongongFollow

RIS ID

28037

Publication Details

Paudel, R. & Perera, N. (2009). Foreign Debt, Trade Openness, Labor Force and Economic Growth: Evidence from Sri Lanka. The ICFAI Journal of Applied Economics, 8 (1), 57-64.

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.