- Journal of Business Economics and Finance
- Vol: 4 Issue: 3
- EXTERNAL DEBT AND ECONOMIC GROWTH: NEW EVIDENCE FOR AN OLD DEBATE
EXTERNAL DEBT AND ECONOMIC GROWTH: NEW EVIDENCE FOR AN OLD DEBATE
Authors : Aylin Soydan, Serap Bedir
Pages : 0-0
Doi:10.17261/Pressacademia.2015313068
View : 4 | Download : 3
Publication Date : 2015-09-29
Article Type : Other
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.Keywords :