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@article{206922,
        author = {Ganga S and Dr.S.Nehru},
        title = {Does Public Debt affect Economic Growth? Evidence from Andhra Pradesh and Tamil Nadu},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {13},
        number = {2},
        pages = {3356-3363},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=206922},
        abstract = {This study examines the long run relationship between public debt and economic growth in Andhra Pradesh and Tamil Nadu using annual time series  data from 1991-2022.  Per capital Net state domestic product (constant prices) is taken as proxy for Economic growth while Ratio of outstanding liabilities to Gross state domestic product is taken as proxy variable for public debt. Debt servicing and investments are taken as explanatory variables. The study employs Augmented Dickey Fuller (ADF) Test and Philips Peron Unit root test to examine the stationarity of the data followed by Johansen Cointegration test and Vector Error Correction model to analyze long run and short run dynamics. The result indicates that there exists a long run relationship among the variables. The normalized cointegration result indicates that public debt negatively affects economic growth in Andhra Pradesh and Tamil Nadu while Investment and Debt servicing positively affects economic growth. The study concludes that sustainable debt management and productive utilization of borrowed funds are essential for maintaining long-term economic growth and fiscal sustainability.},
        keywords = {},
        month = {July},
        }