How external debt led to economic growth in South Asia: A policy perspective analysis from quantile regressions

2021 ◽  
Author(s):  
Muhammad Mohsin ◽  
Hafeez Ullah ◽  
Nadeem Iqbal ◽  
Wasim Iqbal ◽  
Farhad Taghizadeh-Hesary
Keyword(s):  
Economic Growth ◽  
South Asia ◽  
External Debt ◽  
Quantile Regressions ◽  
Policy Perspective ◽  
Perspective Analysis

scholarly journals The Nexus among External Debt and Economic Growth: Evidence from South Asia

2021 ◽  
Author(s):  
Sasindu Wanniarachchi
Keyword(s):  
Economic Growth ◽  
South Asia ◽  
Cross Sections ◽  
Quantitative Research ◽  
Debt Crisis ◽  
External Debt ◽  
Optimal Level ◽  
Research Strategy ◽  
Sustainable Growth ◽  
Savings Rate

Over the past few years, external debt positions of South Asian economies have increased to alarming levels, indicating that those countries are more likely to be exposed to a debt crisis. Given the low domestic savings rate of these economies, they are increasingly compelled to invest significant resources in public infrastructure in order to maintain sustainable growth momentum. At the same time, those countries are invited to enrich by integrating with global synergies in the fields of maritime, trade, and financial initiatives. However, as the recent controversy over the debt-growth association is inconclusive to date; preserving the external debt exposures at an optimal level is incumbent. Consequently, this study reviews annual observations of independent cross-sections of South Asia during the period 1981-2017 in order to find the external debt-growth relationship. In addition, the quantitative research strategy used to measure the expected outcomes primarily consists of panel ARDL specifications. On aggregate levels of data, the results suggest that there is a statistically significant negative association between external debt and economic growth. Also, it has been observed that a significant nonlinear relationship exists in relation to lower-middle income countries.

External debt and economic growth in Nigeria

2019 ◽  
Vol 8 (3) ◽  
pp. 157-171
Author(s):  
Keji Sunday Anderu ◽  
◽  
Adeleke Omolade ◽  
Adeniyi Oguntuase
Keyword(s):  
Economic Growth ◽  
External Debt

Has the Internet increased FDI, economic growth, and trade? Evidence from Asian economies

2021 ◽  
pp. 026666692199974
Author(s):  
Zi Hui Yin ◽  
Chang Hwan Choi
Keyword(s):  
Economic Growth ◽  
East Asia ◽  
South Asia ◽  
Internet Use ◽  
The Internet ◽  
Economic Factors ◽  
Vector Autoregressive ◽  
Western Asia ◽  
Asian Economies ◽  
Transaction Efficiency

This study examines the causal relationship between the Internet and economic factors in Asian economies between 1997 and 2017. The economic factors consist of gross domestic product (GDP), foreign direct investment (FDI), imports, and exports. A comparative analysis of East, South, and Western Asia was conducted using a panel vector autoregressive model. The findings show bidirectional causality between FDI and Internet use in South Asia, unidirectional causality from Internet use to FDI in East Asia, and unidirectional causality from FDI to Internet use in Western Asia. Moreover, the findings indicate unidirectional causality from exports to Internet use in East Asia and unidirectional causality from Internet use to exports in South Asia, but no impact in Western Asia. Finally, the results show unidirectional causality from Internet use to GDP in Western Asia. As these results suggest that Internet use has boosted economic performance in Asia, policy makers in the region should improve Internet use with a focus on economic growth, improving transaction efficiency, and facilitating foreign investment.

scholarly journals The Debt Overhang Hypothesis: Evidence from Pakistan

2016 ◽  
Vol 11 (1) ◽  
pp. 140-151 ◽  
Author(s):  
Muhammad Imran Shah ◽  
Irfan Ullah ◽  
Zia Ur Rahman ◽  
Nadeem Jan
Keyword(s):  
Economic Growth ◽  
Dynamic Behaviour ◽  
Negative Impact ◽  
Labour Force ◽  
External Debt ◽  
Unit Roots ◽  
Debt Overhang ◽  
Debt Burden ◽  
Long Run ◽  
Domestic Labour

AbstractThis study investigates the debt overhang hypothesis for Pakistan in the period 1960-2007. The study examines empirically the dynamic behaviour of GDP, debt services, the employed labour force and investment using the time series concepts of unit roots, cointegration, error correlation and causality. Our findings suggest that debt-servicing has a negative impact on the productivity of both labour and capital, and that in turn has adversely affected economic growth. By severely constraining the ability of the country to service debt, this lends support to the debt-overhang hypothesis in Pakistan. The long run relation between debt services and economic growth implies that future increases in output will drain away in form of high debt service payments to lender country as external debt acts like a tax on output. More specifically, foreign creditors will benefit more from the rise in productivity than will domestic producers and labour. This suggests that domestic labour and capital are the ultimate losers from this heavy debt burden.

C. PENGARUH UTANG LUAR NEGERI DAN EKSPOR TERHADAP PERTUMBUHAN EKONOMI (Studi pada Produk Domestik Bruto Indonesia Periode 2015-2019)

2021 ◽  
Vol 4 (1) ◽  
pp. 22
Author(s):  
Farah Syahri Maulidiyah
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Regression Analysis ◽  
Linear Regression Analysis ◽  
Foreign Debt ◽  
External Debt ◽  
Multiple Linear Regression Analysis ◽  
Analysis Method ◽  
Indonesian Government ◽  
Independent Variable

ABSTRACT The purpose of this research is to analyze the influence of exports and foreign debt which can affect Indonesia's GDP (Gross Domesty Product). The variables of this research are the foreign debt value of the Indonesian government and the value of Indonesian exports as the independent variable, and the value of Indonesia's GDP as the dependent variable. The data used are supporting data for the 2015-2019 period from the time series (time series) of Bank Indonesia and BPS. The data analysis method used multiple linear regression analysis. The results of this study are the value of the Indonesian government's foreign debt and the value of Indonesia's exports have a significant effect. Meanwhile, the results of the partial test (t-test) show that the value of foreign debt and exports of the Indonesian government greatly affects the value of Indonesia's GDP. Keywords : External Debt, Export, Economic Growth (Menggunakan template jurnal sinta 2 JESP (Jurnal Ekonomi dan Studi Pembangunan) eISSSN : 2502-7115 l pISSN : 2502-7115 Universitas Negeri Malang).

External Debts and Economic Growth when Debt Rating Matters

2021 ◽  
Author(s):  
Ly Dai Hung
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Cross Section ◽  
Sovereign Debt ◽  
Developing Economies ◽  
External Debt ◽  
Fixed Effect ◽  
Panel Regression ◽  
Economic Growth Rate ◽  
Determinants Of Economic Growth

The paper investigates the dependence pattern of economic growth on external debt supply by accounting for the safety of debts, measured by the sovereign debt rating. The method of cross-section regression is based on a sample of 145 advanced and developing economies with averaged data over the 1990–2019 period. The pattern of economic growth follows a U-shaped curve, for which the growth rate is first decreasing and then increasing on the external debt supply. A possible explanation can rely on the sovereign debt rating. For low supply of external debts, more supply of debts reduces the debt rating, which, in turn, lowers the economic growth rate. But for high enough supply of debts, more debts raise their rating, improving the growth rate. These results are robust on controlling for various determinants of economic growth and on the fixed effect panel regression.

Sign in / Sign up

Export Citation Format

Share Document