Determinants of External Indebtedness in Heavily Indebted Poor Countries: What Macroeconomic and Socio-Economic Factors Matter?

Autor:	Chukwuebuka Bernard Azolibe
Rok vydání:	2020
Předmět:	050208 finance Corruption media_common.quotation_subject 0502 economics and business 05 social sciences Development economics Economics Population growth 050207 economics Government expenditure General Economics Econometrics and Finance Heavily indebted poor countries media_common
Zdroj:	The American Economist. 66:249-264
ISSN:	2328-1235 0569-4345
DOI:	10.1177/0569434520938326
Popis:	This study specifically examined whether macroeconomic and socio-economic factors such as corruption, foreign aid, government expenditure, external reserve, population growth, economic growth, and unemployment rate matter in increasing or reducing the level of external indebtedness in heavily indebted poor countries (HIPCs). Both static panel data and panel fully modified ordinary least squares (OLS) estimation techniques were employed. Using panel data set of all the 39 HIPCs covering period of 1996 to 2018, we found out that the factors that matter in heightening the intake of external debt are high rate of corruption that leads to mismanagement of public funds, high dependency on foreign aids, increase in government expenditure, population growth, and unemployment rate. However, external reserve and gross domestic product (GDP) has a reducing effect on their external indebtedness. In terms of causal relationship, only corruption, population growth, and GDP have a causal relationship with external debt, while other variables exhibited a zero causal relationship with external debt.JEL Classifications: F34, E6, E24
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::071ad4a77f1102203bee40e64588ef65 https://doi.org/10.1177/0569434520938326 Zobrazit plný text záznamu