Analysing sustainability based relationship between debt and growth in
South-Asian economies and their impact on textile industry: a case for
developing economies

This research aims to quantify the linear and non-linear relationship between debt and economic growth in selected
developing economies. Based on theoretical arguments and annual data considerations in modelling the debt and
growth as a complex relationship across countries, our panel methodology is based on the fixed effect technique. Our
core finding indicates that government debt lowers the GDP in selected developing economies. We also find that the
urban population is a key factor that improves economic growth. Moreover, government expenditures on health and
industrialization are helpful to enhance the growth of the economies. Our study also suggests increased exports,
industrial development, and investment in education for growth. We also propose certain supporting strategies to reduce
the adverse effects of debt-growth relation in the considered economies. Given developing economies’ status, the
prerequisite for broad, dynamic and rule-based debt policy is of paramount importance, ensuring the factual choices
among numerous possibilities, addressing financial constraints and ensuring intergenerational welfare impact.