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Journals / Journal of Business Economics and Finance / 2026 / Volume: 4 Issue: 3

EXTERNAL DEBT AND ECONOMIC GROWTH: NEW EVIDENCE FOR AN OLD DEBATE

Aylin Soydan
Serap Bedir
Pages
—
Publication Date
2015-09-29
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Our overall findings suggest a negative linear effect of external debt for the panel despite some exceptions in the country-specific results.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:This study aims to contribute to the understanding of the impact of external debt on economic growth by using the data for moderately indebted middle-income countries over the period of 1985-2013.
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Key Findings & Data:The paper employs a relatively recent panel analysis technique, the common correlated effects (CCE) framework, which considers cross-sectional dependence and heterogeneity implications in the data.
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Conclusion & Impact:Our overall findings suggest a negative linear effect of external debt for the panel despite some exceptions in the country-specific results.
🔬Design:Article
📍Scope:2013 Verileri
⚙️Variables:Domain Parameters

Abstract

This study aims to contribute to the understanding of the impact of external debt on economic growth by using the data for moderately indebted middle-income countries over the period of 1985-2013. The paper employs a relatively recent panel analysis technique, the common correlated effects (CCE) framework, which considers cross-sectional dependence and heterogeneity implications in the data. Our overall findings suggest a negative linear effect of external debt for the panel despite some exceptions in the country-specific results. In the panel results, the impact of external indebtedness occurs through the debt stock rather than a direct impact of liquidity constraint represented by a debt service variable.

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Cite This Article

Soydan, A., Bedir, S. (2015). EXTERNAL DEBT AND ECONOMIC GROWTH: NEW EVIDENCE FOR AN OLD DEBATE. Journal of Business Economics and Finance, Volume: 4 Issue: 3. https://doi.org/10.17261/Pressacademia.2015313068

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