Open AccessExternal Debt and Economic Growth: A Heterogeneous Static Panel Study in Asian Developing and Transition Economies
Author(s) -
Muhammad Dawood,
Biqiong Zhang,
Ahmed Al-Asfour,
Memooilofar
Publication year - 2021
Publication title -
estudios de economía aplicada
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.123
H-Index - 6
eISSN - 1697-5731
pISSN - 1133-3197
DOI - 10.25115/eea.v39i2.4019
Subject(s) - debt , external debt , economics , internal debt , debt to gdp ratio , monetary economics , estimator , developing country , debt levels and flows , panel data , macroeconomics , econometrics , economic growth , statistics , mathematics
This study examined the impact of total external debt, public external debt, and private external debt on economic growth of Asian developing and transition economies economic growth from 1995 to 2019. We applied the fixed effect model with two robust estimators of the feasible generalized least square estimator and Driscoll-Kraay standard error estimator to address the cross-sectional dependence. The findings showed that the total external debt has a significant and positive impact on economic growth while the public external debt and private external debt affect economic growth adversely.