Debt–growth nexus: a spatial econometrics approach for developing countries

Mohd Daud, Siti Nurazira and Podivinsky, Jan M. (2011) Debt–growth nexus: a spatial econometrics approach for developing countries Transition Studies Review, 18, (1), pp. 1-15. (doi:10.1007/s11300-011-0190-6).


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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.

Item Type: Article
Digital Object Identifier (DOI): doi:10.1007/s11300-011-0190-6
ISSNs: 1614-4007 (print)
Keywords: economic growth, international economics, external debt, spatial econometrics
Organisations: Economics
ePrint ID: 200055
Date :
Date Event
26 February 2011e-pub ahead of print
September 2011Published
Date Deposited: 21 Oct 2011 10:53
Last Modified: 18 Apr 2017 01:26
Further Information:Google Scholar

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