Crowding-in or crowding-out? The linkage between private investment and public debt of India using symmetric and asymmetric cointegration methodology

The study aims to examine the asymmetric effect of public debt on private Investment in India. For examining India, this used NARDL approach. annual time series data for period 1980 2019. Results from symmetric co-integration model demonstrate that there is a long-term relationship between investment and measures debt, with exception external investment, which exhibit an reaction changes debt. long-run asymmetries show positive do not crowd out while negative investment. present debt-investment link may have important policy implications. indicates shocks more crowding effects India shows reduction borrowings lead growth long-run. different previous studies contributing existing literature two ways. first focused role interest rates affecting looked at hypothesis Nonlinear ARDL relationship.