Volume 11, Issue 40 (6-2020)
jemr 2020, 11(40): 159-183 |
Back to browse issues page
Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
Zhilaei aghdam J, Daghighiasli A R, Daman Kashide M, Asmailpor Magari A. The Long-Run Relationship between External Government Debt and Economic Growth in Developing Countries with Upper Middle Income Level (Panel Co-integration Approach). jemr 2020; 11 (40) :159-183
URL: http://jemr.khu.ac.ir/article-1-1954-en.html
URL: http://jemr.khu.ac.ir/article-1-1954-en.html
1- Country and Municipalities Organization
2- Islamic Azad University of Central Tehran Branch ,a.daghighiasli@iauctb.ac.ir
3- Islamic Azad University of Central Tehran Branch
2- Islamic Azad University of Central Tehran Branch ,
3- Islamic Azad University of Central Tehran Branch
Abstract: (4434 Views)
The relationship between external debt and economic growth is one of the important issues in macroeconomics literature and has been considered in empirical studies. So, in this paper the long-run relationship among external government debt and economic growth in 58 selected developing countries for 1985-2018 by applying a pool mean group method which is suggested by Pesaran & Smith. The main empirical results showed that there is a long-run relationship between external debt and economic growth. Also, increase in growth in selected countries in addition to the influence of produce factors, labor, capital stock and monetary policy, influence of public debt. Also, capital stock, open economic, financial balance and saving variables has positive effect and population growth and Government revenue has negative effect on economic growth.
Keywords: External Government Debt, Economic Growth, Selected Developing Countries, Dynamic Panel Data Approach
Type of Study: توسعه ای |
Subject:
رشد و توسعه و سیاست های کلان
Received: 2020/01/12 | Accepted: 2020/08/16 | Published: 2020/09/22
Received: 2020/01/12 | Accepted: 2020/08/16 | Published: 2020/09/22
References
1. Afshari, Z., Shirinbakhsh, S. & Beheshti, M.(2012), Investigation of Fiscal Sustainability in Iran, Quarterly Journal of Economics, 12(45):54-27 (in Perian).
2. Afonso, A., & Jalles, J. T. (2013). Growth and Productivity: The Role of Government Debt. International Review of Economics & Finance, 25, 384-407. [DOI:10.1016/j.iref.2012.07.004]
3. Ahmadi,M. & Mahmoudzadeh, M. (2018), Government Debt and Economic Growth in Iran (PSTR), Macroeconomics Journal, 13(25):133-152 (in Perian).
4. Ajayi, L.B., and Oke, M. O. (2012).Effect External Debt on Economic and Growth Development of Nigcria. International Journal of Business and Social Science, 3 (12)̦: 297- 304.
5. Akram, N. (2011).Impact of Public Debt on the Econornic Growth of Pakistan.The Pakistan Development Review¸ 50(4-11): 599-615. [DOI:10.30541/v50i4IIpp.599-615]
6. Baum, A., Checherita-Westphal, C., & Rother, P. (2013). Debt and Growth: New Evidence for the Euro Area. Journal of International Money and Finance, 32, 809-821. [DOI:10.1016/j.jimonfin.2012.07.004]
7. Charles, O. (2012). Domestic Debt and the Growth of Nigerian Economy. Research journal of finance and accounting, 3(5), 45-56.
8. Checherita-Westphal, C. D., & Rother, P. (2010). The Impact of High and Growing Government Debt on Economic Growth: an Empirical Investigation for the Euro Area.
9. Chehrazi Madraseh, S. & Nejati M. (2017), Effect of General Government Debt and Productivity on the Economic Growth in Iran, Quarterly Journal of Fiscal and Economic Policies, 5(19): 7-28 (in Perian).
10. Chen, Ch. C, Yaob, S., Hue, P. and Linf, y. (2018), Optimal Government Investment and Public Debt in an Economic Growth Model, China Economic Review, Available; http://dx.doi.org/10.1016/j.chieco.2016.08.005. [DOI:10.1016/j.chieco.2016.08.005]
11. Chowdhury, K. (1994). A Structural Analysis of External Debt and Economic Growth: Some Evidence from Selected Countries in Asia and the Pacific. Applied Economics, 26(12), 1121-1131. [DOI:10.1080/00036849400000110]
12. Elmendorf, D. W., & Mankiw, N. G. (1999). Government Debt. Handbook of Macroeconomics, 1, 1615-1669. [DOI:10.1016/S1574-0048(99)10038-7]
13. Ezeabasili, V.N., and Isu. H.O., and Mojekwu, J.N. (2011).Nigeria's External Debtand Economic Growth: An Error Correction Approach. International Journal of Business and Management,6( 5):156-170. [DOI:10.5539/ijbm.v6n5p156]
14. Fallahi, F., Asgharpour, H. & Ahmadian, K. (2019), The Effect of External Government Debt on Iranian Economic Growth (MS Approach), Quarterly Journal of Financial Economics, 13(46): 183-216 (in Perian).
15. Fatahi, S., Heydari Dizgaraei, A. & Askari, E. (2014), Investigation of Fiscal Sustainability in Iran, Quarterly Journal of Fiscal and Economic Policies, 2(6): 67-86(in Perian).
16. Fry, M. J. (1989). Foreign Debt Instability: An Analysis of National Saving and Domestic Investment Responses to Foreign Debt Accumulation in 28 Developing Countries. Journal of International Money and Finance, 8(3), 315-344. [DOI:10.1016/0261-5606(89)90001-6]
17. Hameed, M., & Ashraf, M. (2008). Physiological and Biochemical Adaptations of Cynodon Dactylon (L.) Pers. from the Salt Range (Pakistan) to salinity stress. Flora-Morphology, Distribution, Functional Ecology of Plants, 203(8), 683-694. [DOI:10.1016/j.flora.2007.11.005]
18. lyoha, M. A. (1999).External Debt and Economic Growth in Sub-Saharan African Coutries: An Econometric Study.(no. rp-090)
19. Mohamed, M., and Abdemawla. A. (2005). The Impact of External Debts on Economic Growth: an Empirical Assessment of the Sudan: 1978-2001. Eastern Africa Social Science Research Review, 21(2):53-66. [DOI:10.1353/eas.2005.0008]
20. Molaei, M. & Golkhandan, A. (2014), The Long-run and Short-run Effects of Budget Deficit on the Economic Growth in Iran, Economic Strategy Journal, 2(5): 95-115 (in Perian).
21. Montazeri Shorekchali, J. (2019), The Lafer Curve Debt Test in Iran: Evidence of STR, Quarterly Journal of Economic Growth and Development, 36: 129-146(in Perian).
22. Mousavi Nik, S.H. & Bagheri Pormehr, S. (2019), The Creation of Government Debt Time Series and Etimation of Government Debt Optimum Level, Sustainable Development and Economic Growth Journal, 19(1): 29-52 (in Perian).
23. Muritala, T. A. (2012). Empirical Analysis on Impact of External Debt on Economic Growth in Nigeria. Acta Universitatis Danubius. Œconomica, 8(6).
24. Panagiotis, P. (2019), Government Debt and Economic Growth. A Threshold Analysis for Greece, Peace Economics, Peace Science, and Public Policy, 25(1): 1-6. [DOI:10.1515/peps-2018-0003]
25. Puente-A., M. & Sanso-N., M. (2015), Granger causality between debt and growth: Evidence from OECD countries, International Review of Economics and Finance, 35, : 66-77. [DOI:10.1016/j.iref.2014.09.007]
26. Putunoi, G. K., & Mutuku, C. M. (2013). Domestic Debt and Economic Growth Nexus in Kenya. Current Research Journal of Economic Theory, 5(1), 1-10. [DOI:10.19026/crjet.5.5518]
27. Reinhart, C. M., and Rogoff, K. S. (2010). Growth in a Time of Debt (Digest Summary). American Economic Review, 100(2): 573-578. [DOI:10.3386/w15639]
28. Rezaei, A.R. (2013), The Dynamic Effect of Total Debts on the Real Sector of Iranian Economy (1981-2011) and Evaluation of that's Effect as a Signal of Financial Crisis, Institunal Research of Money and Banking.
29. Sadeghi Amroabadi B. & Mahmoudinia D. (2020), Simultaneous Occurrence of Banking Debt and Currency Crises (Triple Crises) in Iranian Economy and Its Determining Factors During the Period 1980-2017, Journal of Economic Modeling Research (Jemr),10 (39) :187-240 (in Perian).
30. Salmani Y, Yavari K, Asgharpour H & Sahabi, B. (2018), The Macroeconomic Effects of Government Debt in Iran, Journal of Economic Modeling Research (Jemr), 8 (32) :129-177 (in Perian). [DOI:10.29252/jemr.8.32.129]
31. Salmani, Y., Yavari, K., Sahabi, B. & Asgharpour, H. (2017), The Short-run & Long-run Effects of Government Debt on Economic Growth in Iran, Applied Economics Journal, 5(18): 81-107 (in Perian).
32. Samuelson, P. & Nourdhous, W. (1994), Economics, Translated by Nourouzi, A & Jahandoust, M.E.
33. Tasos,S. (2012). Does Government Debt Promote Economic Growth? An Empirical Analysis with Structural Breaks for the Economy of China. The Romanian Economic Journal:1-20
34. Tica, J., Arčabić, V., Lee, J., and Sonora, R. J. (2014). On the Causal Relationship Between Public Debt and GDP Growth Rates in Panel Data Models. EFZG Working Paper Series/EFZG Serija članaka u nastajanju, (09): 1-10.
35. www.imf.org , IMF Report (2019)
36. www.worldbank.org, WDI(2019)
Send email to the article author
| Rights and permissions | |
 | This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. |
