Abstract enIn the economics literature, the direction and intensity of the relationship between external debt and economic growth are discussed frequently. For developing countries which are referred to as “Emerging market economies”, due to the weakening of the production-to-market and income-saving relationships, tend to external borrowing by increasing amount, is observed.The aim of this study is examine the relationship between external debt and economic growth for 10 counties (China, India, Korea Repuclic, Turkey, Polland, Mexico, Brazil, Argentina and South Africa), which are classified as “emerging market economies” by The U.S. Commerce Department’s. Within the scope of the empirical model, primarily heterogeneity of variables studied by using Delta test (Pesaran and Yamagata, 2008). Then, withal CDLM test, it’s decided that model has a cross section dependency. Series were examined by the second generation unit root test (CADF test). After the existence of the cointegration relationship between the series proved by using the Westurlund ECM cointegration test, long-term regression coefficients were estimated by Common Correlated Effects Model. According to the empirical results, external debt has a negative effect on the economic growth in parallel with the emergence of the phenomenon of over-indebtedness
Alan : Sosyal, Beşeri ve İdari Bilimler
Dergi Türü : Ulusal
Benzer Makaleler | Yazar | # |
---|
Makale | Yazar | # |
---|