Public Debt and Economic Growth in Switzerland

Economic theory suggests that a realistic level of borrowing is beneficial for both developing and developed economies in achieving sustainable economic growth. However, as result insufficient domestic resources to fund the “development projects”, required progress, most countries strongly rely on internal (domestic) external (international) capitals such public debt, foreign direct investment (FDI) remittances. Keeping mind this significance, study analyzes role FDI remittances accelerating growth Switzerland. For getting purpose achieved, gathers data from world development indicators (WDI) period 1997-2016. The uses predictors, while taken outcome variable. applies auto regressive distributive lag (ARDL) model analyze data. Results show positive influence Switzerland which line with theory. Based findings, articulating implementing policies aimed at attracting more inflows capital will positively contribute long run. furthers government keep debts GDP threshold low possible.