Debt–growth nexus: a spatial econometrics approach for developing countries
Debt–growth nexus: a spatial econometrics approach for developing countries
The objective of this paper is to examine the role of external debt in a country’s economic growth. With 31 developing countries divided into four regions, this paper employs the recent technique of spatial econometrics to incorporate the neighbouring effect in the debt–growth model. The empirical results reveal that the East Asia and Pacific, Latin America and Caribbean and the Sub-Saharan Africa regions provide convincing evidence to support a negative relationship between the external debt and economic growth. In addition, there is evidence to support the existence of spillover growth among neighbouring countries. This suggests that the role of spatial correlation is important and should be considered for any analysis of the growth model.
economic growth, international economics, external debt, spatial econometrics
1-15
Mohd Daud, Siti Nurazira
f58a5752-756d-4e60-ba8e-2419597aa418
Podivinsky, Jan M.
68b5a6e8-9d09-4a3e-97b2-4a9e4f1efbb9
September 2011
Mohd Daud, Siti Nurazira
f58a5752-756d-4e60-ba8e-2419597aa418
Podivinsky, Jan M.
68b5a6e8-9d09-4a3e-97b2-4a9e4f1efbb9
Mohd Daud, Siti Nurazira and Podivinsky, Jan M.
(2011)
Debt–growth nexus: a spatial econometrics approach for developing countries.
Transition Studies Review, 18 (1), .
(doi:10.1007/s11300-011-0190-6).
Abstract
The objective of this paper is to examine the role of external debt in a country’s economic growth. With 31 developing countries divided into four regions, this paper employs the recent technique of spatial econometrics to incorporate the neighbouring effect in the debt–growth model. The empirical results reveal that the East Asia and Pacific, Latin America and Caribbean and the Sub-Saharan Africa regions provide convincing evidence to support a negative relationship between the external debt and economic growth. In addition, there is evidence to support the existence of spillover growth among neighbouring countries. This suggests that the role of spatial correlation is important and should be considered for any analysis of the growth model.
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e-pub ahead of print date: 26 February 2011
Published date: September 2011
Keywords:
economic growth, international economics, external debt, spatial econometrics
Organisations:
Economics
Identifiers
Local EPrints ID: 200055
URI: http://eprints.soton.ac.uk/id/eprint/200055
ISSN: 1614-4007
PURE UUID: cf50ebd7-ed5d-4f2a-9108-fc8a8b23ca43
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Date deposited: 21 Oct 2011 10:53
Last modified: 15 Mar 2024 02:34
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Author:
Siti Nurazira Mohd Daud
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