The Role of External Debt on Economic Growth: Evidence from Mauritania

This paper addresses the gap in the literature by investigating the role of the institutional quality in the nexus of external debt and economic growth. By employing a dynamic panel data analysis, we found that the institutional quality plays some role in complementing the effect of external debt on a country’s economic growth. We also found that the negative effect of external debt and a country’s economic growth monotonically increases with the level of institutional indicator, which implies the possibility of debt overhang may still happen in economies endowed with good institutions, but for higher values of debt.

Download Full-text

Assessing The Role of External Debt in Economic Growth of The Asean-4 Countries: An Empirical Study

International Journal of Management Studies ◽

10.32890/ijms.21.2.2014.10411 ◽

2014 ◽

Author(s):

Siti Nurazira Mohd Daud

Keyword(s):

Economic Growth ◽

Financial Crisis ◽

Empirical Study ◽

External Debt ◽

Optimal Level ◽

Asian Financial Crisis ◽

High Accumulation

The Asian Financial Crisis in 1997 witnessed an episode of high accumulation of external debt among the crisis-hit countries, namely Indonesia, Malaysia, Philippines and Thailand. This leads to the issue of the role played by external debt in stimulating the economies of ASEAN-4 countries. This paper tries to examine the role of external debt in the economies of the ASEAN-4 countries. The results demonstrate that external debt plays a role in improving the economic growth of the ASEAN-4 countries. In addition, the accumulation of external debt is positively associated with Indonesia’s and Thailand’s economic growth up to an optimal level, beyond the optimal level the external debt has inversely contributed to the economy. Keywords: External debt, ASEAN-4, economic growth.

Download Full-text

Impact of External Debt on Stock Market Performance and Economic Growth: Moderating Role of Capital Formation

Journal of Finance and Accounting Research ◽

10.32350/jfar/0201/01 ◽

2020 ◽

Vol 2 (1) ◽

pp. 1-1

Author(s):

Muhammad Irfan ◽

Muhammad Waris Rao ◽

Jawad Akbar ◽

Ijaz Younis

Keyword(s):

Economic Growth ◽

Stock Market ◽

Market Performance ◽

External Debt ◽

Capital Formation ◽

Least Square ◽

Moderation Effect ◽

Stock Market Performance ◽

Relationship Of

The main objective of this study is to ascertain the effect of external debt on economic growth and stock market performance in SAARC countries that included Pakistan, Sri Lanka, Bangladesh and India for the period spanning from 1992 to 2017. This study examines the effect of capital formation as a moderator. Using panel least square recreation analysis, we find a negative and significant association between economic growth and external debts. The inclusion of interaction tea reveals a positive moderation effect of capital formation on the relationship of external debt and economic growth. Our study suggest that the external debt is less favourable for the SAARC countries and that greater emphasis should be increased on capital formulation. Moreover, policies that enhance the national treasury base, increase exports, and make environment conducive for foreign direct investment should be introduced in SAARC countries. The governments of SAARC countries should look for the alternates of external debt for financing the fiscal deficit.

Download Full-text

Inwestycje zagraniczne we Francji w dobie globalizacji

Przedsiębiorczość - Edukacja ◽

10.24917/20833296.7.2 ◽

2011 ◽

Vol 7 ◽

pp. 24-41

Author(s):

Sławomir Dorocki

Keyword(s):

Economic Growth ◽

International Economic ◽

World Economy ◽

Foreign Capital ◽

External Debt ◽

Regional Differentiation ◽

Foreign Direct Investments ◽

Foreign Investments ◽

The World

The turn of the 20th and 21st centuries brought an intensive increase of international economic connections that were a part of the process of globalization of the world economy. The result of these processes was opening of the countries’ economies which influenced the increase of the role of foreign investments as a factor of economic development of a country. Foreign direct investments (FDI) are nowadays one of the most sought-after forms of foreign capital flow. Foreign investments do not cause external debt. They influence the flow of technology, generate economic growth, contribute to the decrease in unemployment, introduce new management methods, create access to the new markets and generate production infrastructure. The following study presents a short characteristic of foreign investments in France. It analyses regional differentiation of foreign investments in France on the basis of their quantity and in reference to the number of workplaces generated by FDI. Finally, the article presents the factors that have influence on the localization of foreign investments.

Download Full-text