Publication:
An investigation of the factors influencing external debt in emerging market economies

dc.contributor.authorİlhan, Ali
dc.date.accessioned2024-05-13T12:18:00Z
dc.date.available2024-05-13T12:18:00Z
dc.date.issued2023-12-30
dc.description.abstractExternal financing support plays a vital role in the economic development of emerging market economies (EMEs). However, the ineffective using of external resources can increase the debt burden and exacerbate macroeconomic instability and financial vulnerabilities. After the global financial crisis, growing debt accumulation with the debt-favored environment has raised discussions about whether external financing is a blessing or a curse for macro-financial stability. This paper explores the drivers of external debt in EMEs from 2005Q1 to 2020Q1. To this end, the effects of economic growth, inflation, exchange rate, trade openness, and domestic credit on external debt to gross domestic product are analyzed with panel cointegration and panel augmented mean group (AMG) estimator for eight EMEs. The panel cointegration findings show that a long-run relationship exists between the series. The panel AMG findings indicate that economic growth declines external debt. A rise in trade openness, inflation, and domestic credit accumulate foreign debt in the long-run, whereas the impact of the credit is barely statistically significant. Although the impact of the exchange rate is insignificant for the panel, it is statistically significant in the four countries. Country-specific results are largely consistent with the panel findings, but some differences exist across countries.en_US
dc.identifier.citationİlhan, A. (2023). An investigation of the factors influencing external debt in emerging market economies. International Journal of Social Inquiry, 16(2), 497−509.en_US
dc.identifier.eissn1307-9999
dc.identifier.endpage509
dc.identifier.issn1307-8364
dc.identifier.issue2
dc.identifier.startpage497
dc.identifier.urihttps://dergipark.org.tr/tr/download/article-file/3090459en_US
dc.identifier.urihttps://hdl.handle.net/11452/41422en_US
dc.identifier.volume16
dc.language.isoenen_US
dc.publisherBursa Uludağ Üniversitesitr_TR
dc.relation.journalInternational Journal of Social Inquiryen_US
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergitr_TR
dc.rightsinfo:eu-repo/semantics/openAccessen_US
dc.subject.otherEmerging market economiesen_US
dc.subject.otherExternal debten_US
dc.subject.otherMacroeconomic variablesen_US
dc.subject.otherPanel cointegrationen_US
dc.subject.otherPanel augmented mean groupen_US
dc.titleAn investigation of the factors influencing external debt in emerging market economiesen_US
dc.typeArticleen_US
dspace.entity.typePublicationen_US

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