Diş Borç Ve Ekonomi̇k Büyüme İli̇şki̇si̇: "Yükselen Pi̇yasa Ekonomi̇leri̇" Örneği̇

Erataş, Filiz; Nur, Hayriye Başçı

doi:10.14780/iibdergi.201324465

Cited by 17 publications

(3 citation statements)

References 3 publications

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“…The use of external debt for effective and productive investments is one of the main parameters in increasing growth. In some studies, it is argued that external debt affects growth negatively by excluding private investments (Kharusi and Ada, 2018) or by causing excessive debt burden (Erataş and Nur (2013). According to some studies, if external debt is directed to optimal projects and sectors, it affects growth positively (Kasidi and Said, 2013;Shah and Pervin, 2012).…”

Section: Literaturementioning

confidence: 99%

“…In addition, the negative impact of public borrowing is higher than private borrowing in all periods. Erataş and Nur (2013) discussed the relationship between growth and external debt in 10 countries that are called "Emerging Market Economies". According to the findings, external debt has a negative effect on growth in parallel with the emergence of excessive indebtedness.…”

Section: Literaturementioning

confidence: 99%

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Does External Debts Affect Economic Growth: The Case of E7 Countries

Özyılmaz

2022

Anemon Muş Alparslan Üniversitesi Sosyal Bilimler Dergisi

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Developing countries, which mostly face financing problems, often have to use external debt. On the one hand, external debt stands out as an important source of financing investments, but on the other hand, due to inefficient use or administrative failures, it may harm the macroeconomic indicators of countries, rather than benefit, with parameters such as exchange rate, bad governance and corruption. One of these macroeconomic indicators is undoubtedly economic growth. In this context, the effect of external debt on growth is discussed for the E7 countries in the 1992-2020 period. First of all, the relationship between external debt growth was examined using Westerlund cointegration analysis. According to, there is a long term co-integration relationship between foreign debt and economic growth in E7 countries. Common Correlated Effects Estimator (CCE) and Augmented Mean Group Estimator (AMG) models were used for the coefficient estimation. The findings obtained from both models indicate that external debt negatively affects growth.When the findings are analyzed by country, according to the AMG model, foreign aid affects growth negatively in China, India, Russia, Brazil and Mexico. According to the CCE model findings, foreign aid negatively affects growth in India, Brazil, Mexico and Indonesia. However, according to the findings of both models, the effect of foreign aid on growth in Turkey is statistically insignificant. Panel group analysis results support the debt overhang hypothesis for E7 countries

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Section: Literaturementioning

confidence: 99%

Section: Literaturementioning

confidence: 99%

Does External Debts Affect Economic Growth: The Case of E7 Countries

Özyılmaz

2022

Anemon Muş Alparslan Üniversitesi Sosyal Bilimler Dergisi

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“…One of the critical issues in panel data analysis concerns the cross-sectional dependence, and the CCE methodology is preferred in the study as it considers any possibility of cross-sectional dependence as well as heterogeneity related issues in the data. To the best of our knowledge, the CCE estimation has not been used in the related empirical work with the exception of Eratas and Basci Nur (2013). Despite the finding of a negative impact of external debt on economic growth, the study has limitations owing to the model specification which is based on the external debt stock as the sole explanatory variable for economic growth.…”

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confidence: 99%

External Debt and Economic Growth: New Evidence for an Old Debate

Soydan

Bedir²

2015

Pressacademia

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This study aims to contribute to the understanding of the impact of external debt on economic growth by using the data for moderately indebted middle-income countries over the period of 1985-2013. The paper employs a relatively recent panel analysis technique, the common correlated effects (CCE) framework, which considers cross-sectional dependence and heterogeneity implications in the data. Our overall findings suggest a negative linear effect of external debt for the panel despite some exceptions in the country-specific results. In the panel results, the impact of external indebtedness occurs through the debt stock rather than a direct impact of liquidity constraint represented by a debt service variable.

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