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.
📌 3 Maddede Bu Makale
🎯
Amaç & Hipotez: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.
📊
Temel Bulgular & Veri: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.
💡
Sonuç & Katkı: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.
🔬Tür:Araştırma Makalesi
📍Kapsam:2013 Verileri
⚙️Değişkenler:Alan Parametreleri
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.
🔖
Bu Makaleye Atıf Yap
Soydan, A., Bedir, S. (2015). EXTERNAL DEBT AND ECONOMIC GROWTH: NEW EVIDENCE FOR AN OLD DEBATE. Journal of Business Economics and Finance, Cilt: 4 - Sayı: 3, 1–1. https://ajindex.com/articles/835182
Arnone, M.; Bandiera, L. and Presbitero, A.F. (2005) “External Debt Sustainability: Theory and Empirical Evidence”, Catholic University of Milan (Piacenza) Working Paper, No. 33, December. • Avramovic, D.; Husain, S.S.; de Weille, J.; Froland, J.; Hayes, J. P.; Wyss, H. (1964). Economic Growth and External Debt. Washington, D.C.: The World Bank. • Bhattacharya, R. and Clements, B. (2004) Finance and Development, 41(4), 48-50. • Breusch, T.S. and Pagan, A.R. (1980) “The Lagrange Multiplier Test and Its Applications to Model Specification in Econometrics", Review of Economic Studies, 47(1), 239-253. • Chenery, H.B. and Strout, A.M. (1966) “Foreign Assistance and Economic Development”, American Economic Review, 56(4), 679-733. • Chowdhury, A.R. (2001) “Foreign Debt and Growth in Developing Countries: A Sensitivity and Causal Analysis”, WIDER Discussion Papers, World Institute for Development Economics (UNU-WIDER), No.2001/95. • Claessens, S. (1990) "The Debt Laffer Curve: Some Estimates", World Development, 18(12), 1671-1677. • Claessens, S.; Detragiache, E.; Kanbur, R. and Wickham, P. (1996). "Analytical aspects of the debt problems of heavily indebted poor countries”, World Bank Policy Research Working Paper Series, No.1618. • Clements, B.; Bhattacharya, R. and Nguyen, T.Q. (2003) “External Debt, Public Investment, and Growth in Low-Income Countries”, IMF Working Paper, No.03/249. • Cohen, D. (1993) "Low Investment and Large LDC Debt in the 1980s", American Economic Review, 83(3), 437-449. • Cordella, T.; Ricci, L.A. and Ruiz-Arranz, M. (2005) “Debt Overhang or Debt Irrelevance?Revisiting the Debt-Growth Link”, IMF Working Paper, No.05/223. • Desphande, A. (1997) “The Debt Overhang and the Disincentive to Invest”, Journal of Development Economics, 52, 169-187. • Easterly, W. (2002) “How Did Heavily Indebted Poor Countries Become Heavily Indebted? Reviewing Two Decades of Debt Relief”, World Development, 30(10), 1677-1696. • Elbadawi, I.; Ndulu, B. and Ndung, N. (1997) “Debt Overhang and Economic Growth in Sub-Saharan Africa,” in External Finance for Low-Income Countries, ed. by Iqbal, Zubair and Ravi Kanbur, Washington: IMF Institute, 49-76. • Eratas, F. and Basci Nur, H. (2013) “Dış Borç ve Ekonomik Büyüme İlişkisi: ‘Yükselen Piyasa Ekonomileri’ Örneği”, Marmara Üniversitesi İİB Dergisi, 35(2), 207-230 (in Turkish). • Fosu, A.K.F. (1996) “The Impact of External Debt on Economic Growth in Sub- Saharan Africa”, Journal of Economic Development, 21(1), 93-11