Paper Title :Foreign Debt and Economic Growth: Empirical Evidence from The Developing Countries

Author :Altan-Erdene Batbayar, Myagmarsuren Boldbaatar

Article Citation :Altan-Erdene Batbayar ,Myagmarsuren Boldbaatar , (2018 ) " Foreign Debt and Economic Growth: Empirical Evidence from The Developing Countries " , International Journal of Management and Applied Science (IJMAS) , pp. 35-43, Volume-4,Issue-9

Abstract : This paper empirically analyzes the relationship between foreign debt and economic growth of developing countries and attempts to estimate debt threshold for every classification of countries by income level and lending categories using linear as well as non-linear models. Our study is the broadest one regarding the coverage (118 developing countries) and time period (1990 to 2015). The empirical results show that foreign debt has a non-linear effect on economic growth regardless of in which income group and lending categories they belong to. The debt threshold is estimated from 30 percent (countries of IDA and Blend category) to 90 percent (countries of upper-middle income group). Keyword- economic growth, foreign debt, debt threshold, income level, lending category

Type : Research paper

Published : Volume-4,Issue-9

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