The Effects of Local government debts On Economic Growth of Libyan Economic during the Period (1990 – 2022)
الكلمات المفتاحية:
Economic Growth، Gross Capital Formation، Labor Force، Local government debts، Cobb–Douglas Production، Autoregressive Distributive Lag (ARDL )الملخص
The paper analyses the effects of the Local government debts on economic growth in Libya, using time series data for the period, 1990-2022. to empirically explore the short and long- term impact of Local government debts on economic growth. In comparison to similar empirical studies, our research will add to the existing literature by providing the latest empirical evidence for a nonlinear study, was based on using the Cobb–Douglas production function relationship . The empirical analysis includes a set of important variables economic growth, gross capital formation, Labor force, Local government debts. This study adopted the autoregressive Distributive Lag (ARDL ) Co-Integration techniques to investigate the relation between the previous study variables. The paper also employed various estimation tests to validate the fitness and stability of the estimated model , discoveries from the study suggests that there is a Co-Integration among the study variables. Local government debts was ascertained to in the year t was a statistically insignificant postative effect on economic growthand in the year t-1 was a statistically significant postative effect on economic growth in the short run . but the Local government debts was a statistically significant negative effect on economic growth in the long run. Also results of diagnostic tests, show that estimated model It does not suffer from any problems and it is reliable and stable throughout the study in both short and long run. Based on these findings, the study recommended that policy decisions makers should integrate appropriate measures towards ensuring suitable management of Local government debts and directing funds from debt towards productive investments. Finally, we note that this research work opens up interesting research perspectives, in particular, The study of the impact of Local government debts on social and economic development.
