• editor.aipublications@gmail.com
  • Track Your Paper
  • Contact Us
  • ISSN: 2456-7817
NAAS Journal 2026

International Journal Of Engineering, Business And Management(IJEBM)

  1. Home
  2. IJEBM
  3. Vol-8,Issue-3, July - September 2024
  4. External Debt and Economic Growth: Empirical Evidence from Developing Countries

For Authors

aipublications Neliti olcc worldcat dimensions-ai microsoft-academic-search
Author Guidelines Peer Review Process Plagiarism Policy Publication Ethics and Publication Malpractice Statement Editorial Board Call for Papers Publication Process Topics of Interest Track Status of Paper

Issues

Current Archive

Downloads

Download Formats Paper Format Copyright Form

Indexing and Abstracting

aipublications google scholar aipublications academia

External Debt and Economic Growth: Empirical Evidence from Developing Countries

Nechirwan Burhan Ismael , Shamal Hasan Obaid Mahmod , Hariwan Subhi Khorsheed


International Journal of Engineering, Business And Management(IJEBM), Vol-8,Issue-3, July - September 2024, Pages 1-9 , 10.22161/ijebm.8.3.1

Download | Downloads : 12 | Total View : 2586

Article Info: Received: 15 Jul 2024; Received in revised form: 07 Aug 2024; Accepted: 12 Aug 2024; Available online: 17 Aug 2024

Cite this Article: APA | ACM | Chicago | Harvard | IEEE | MLA | Vancouver | Bibtex

Share

This study investigates the complex relationship between external debt and economic growth in developing countries. Utilizing a quantitative research methodology, data was collected from three selected developing countries through an online questionnaire distributed to key stakeholders, totaling 189 responses. Various statistical techniques, including t-tests, Chi-square tests, Variance Inflation Factor (VIF) assessment, Partial Least Squares Regression (PLS), and Principal Component Analysis (PCA), were employed to analyze the data. The findings reveal that moderate levels of external debt can positively impact economic growth, while excessive debt levels are detrimental. Effective debt management practices and strong institutional frameworks significantly enhance the positive effects of external debt. The study also highlights the adverse impact of external economic shocks on the debt-growth relationship. Key predictors of economic growth identified include external debt levels, debt management practices, and institutional quality. These factors underscore the importance of maintaining sustainable debt levels, implementing robust debt management strategies, and improving governance to optimize the benefits of external borrowing. The study concludes with recommendations for policymakers to maintain sustainable debt levels, negotiate favorable borrowing terms, and develop risk management strategies to mitigate external shocks. Limitations of the study include the reliance on data from three countries and the cross-sectional design. Future research should consider longitudinal studies, broader samples, sector-specific analyses, qualitative approaches, and the impact of global economic changes. Overall, this study provides valuable insights into the dynamics of external debt and economic growth in developing countries, offering guidance for policy formulation and economic planning to promote sustainable development.

External Debt, Economic Growth, Debt Management, Institutional Quality

[1] Ajayi, I., & Edewusi, D. (2020). Effect of public debt on economic growth of Nigeria: An empirical investigation. International Journal of Business and Management Review, 8(1), 18-38.
[2] Alemu, T., Choramo, T. T., & Jeldu, A. (2023). External Debt, Institutional Quality and Economic Growth in East African Countries. Journal of East-West Business, 29(4), 375-401.
[3] Awan, A. G., & Qasim, H. (2020). The impact of external debt on Economic Growth of Pakistan. Global Journal of Management, Social Scienes and Humanities, 6(1), 30-61.
[4] Dey, S. R., & Tareque, M. (2020). External debt and growth: role of stable macroeconomic policies. Journal of Economics, Finance and Administrative Science, 25(50), 185-204.
[5] Didia, D., & Ayokunle, P. (2020). External debt, domestic debt and economic growth: The case of Nigeria. Advances in Economics and Business, 8(2), 85-94.
[6] Edo, S., Osadolor, N. E., & Dading, I. F. (2020). Growing external debt and declining export: The concurrent impediments in economic growth of Sub-Saharan African countries. International Economics, 161, 173-187.
[7] Gaies, B., & Nabi, M. S. (2021). Banking crises and economic growth in developing countries: Why privileging foreign direct investment over external debt?. Bulletin of Economic Research, 73(4), 736-761.
[8] Inyang, N., & Effiong, U. (2020). Nigeria‟ s Public External Debt and Economic Growth: Reconsidering the Empirics. World Journal of Innovative Research (WJIR), 9(3), 13-20.
[9] Issac, A., Tinashe, M., & Mensah, D. B. (2021). The İmpact of external debt on economic growth in Ghana. EPRA International Journal of Economics, Business and Management Studies, 8(9), 1-10.
[10] Joshua, U., Babatunde, D., & Sarkodie, S. A. (2021). Sustaining economic growth in Sub-Saharan Africa: Do FDI inflows and external debt count?. Journal of Risk and Financial Management, 14(4), 146.
[11] Law, S. H., Ng, C. H., Kutan, A. M., & Law, Z. K. (2021). Public debt and economic growth in developing countries: Nonlinearity and threshold analysis. Economic Modelling, 98, 26-40.
[12] Makun, K. (2021). External debt and economic growth in Pacific Island countries: A linear and nonlinear analysis of Fiji Islands. The Journal of Economic Asymmetries, 23, e00197
[13] Manasseh, C. O., Abada, F. C., Okiche, E. L., Okanya, O., Nwakoby, I. C., Offu, P., ... & Nwonye, N. G. (2022). External debt and economic growth in Sub-Saharan Africa: Does governance matter?. Plos one, 17(3), e0264082.
[14] Muhammad, M. A., & Abdullahi, K. (2020). Impact of external debt servicing on economic growth in Nigeria: An ARDL approach. International Journal of Business and Technopreneurship, 10(2), 257-267.
[15] Ohiomu, S. (2020). External debt and economic growth nexus: Empirical evidence from Nigeria. The American Economist, 65(2), 330-343.
[16] Qureshi, I., & Liaqat, Z. (2020). The long-term consequences of external debt: Revisiting the evidence and inspecting the mechanism using panel VARs. Journal of macroeconomics, 63, 103184.
[17] Safdar, Z., & Malik, R. (2020). Unraveling the Interplay Between External Debt and Economic Growth: Insights from Pakistan's Macroeconomic Landscape. Journal of Business and Economic Options, 3(3), 120-128.
[18] Sharaf, M. F. (2022). The asymmetric and threshold impact of external debt on economic growth: new evidence from Egypt. Journal of Business and Socio-economic development, 2(1), 1-18.
[19] Tajammal, R., & Butt, S. (2024). Precarious Tightrope Between External Debt and Economic Growth: A Comparative Analysis of Bangladesh and Sri Lanka. Journal of Asian Development Studies, 13(2), 76-90.
[20] Yusuf, A., & Mohd, S. (2021). The impact of government debt on economic growth in Nigeria. Cogent Economics & Finance, 9(1), 1946249.
[21] Zhang, B., Dawood, M., & Al-Asfour, A. (2020). External debt and economic growth: A dynamic panel study of Granger causality in developing countries. The Journal of Asian Finance, Economics and Business, 7(11), 607-617.

aipub drij aipub scribd internet archive research bib scilit indiana tynd rootindexing aipub pdfsr aipub cite factor aipub issuu aipub wikicfp aipub google aipub slideshare aipub reddit aipub digg aipub tumblr aipub plurk aipub yudu Active Search Results
© 2021 AI Publications | All Rights Reserved