An empirical investigation into the determinants of external debt in Asian developing and transitioning economies

Development Studies Research

Samuel Tawiah Baidoo¹  Syed Mehmood Raza Shah²  Muhammad Dawood² 

[1] Department of Economics, Kwame Nkrumah University of Science and Technology, Kumasi, Ghan;Department of Accounting and Finance, School of Business, Christian Service University College, Kumasi-Ghan;School of Finance, Central University of Finance and Economics Beijing, Beijing, People’s Republic of Chin;

关键词: External debt;    government borrowing;    economic growth;    generalized method of moments (GMM);    Asia;   

DOI  :  10.1080/21665095.2021.1976658

来源: Taylor & Francis

【 摘 要 】

This paper investigates the determinants of external debt in 32 Asian developing and transitioning economies for the period 1995–2019. Estimation is carried out using the generalized method of moments (GMM), which is capable of dealing with potential endogeneity problems. The results show that in both the short- and long-run, economic growth and investment reduce external debt, whereas exchange rate, trade, and government expenditure increase external debt. Diagnostic tests confirm the reliability and consistency of our findings, which should be taken into account by policymakers for policy formulation and implementation. Based on our empirical findings, relevant policy implications, aimed at reducing external debt in the selected Asian developing and transitioning economies, are provided for policy consideration.

【 授权许可】

CC BY