| Title: |
External debt and economic growth: moderating role of governance in South Asia Region. |
| Authors: |
Farooq, Umar1 (AUTHOR) umerrana246@gmail.com, Ahmed, Adel2 (AUTHOR), Tabash, Mosab I.3 (AUTHOR), Al-Absy, Mujeeb Saif Mohsen4 (AUTHOR), Elsantil, Yasmeen5 (AUTHOR) |
| Source: |
Eurasian Economic Review. Jun2024, Vol. 14 Issue 2, p339-360. 22p. |
| Subject Terms: |
*Economic expansion, *External debts, *Short-term debt, *Economic development, *Empirical research, Economic conditions in Asia |
| Geographic Terms: |
South Asia |
| Abstract: |
The current analysis explores the effect of external debt on economic growth and how better governance interacts with this relationship. For empirical assessment, we sample 20 years of data (2000–2019) of South Asian economies and consider the FMOLS and DOLS models to model the regression among the variables. The statistical analysis reveals a significant negative effect of both long- and short-term external debts, while governance has a significant positive effect on economic growth. In addition, the positive moderating role of governance was also observed in the nexus of external debt and economic growth. Enhancing governance can make external borrowing beneficial for economic progress. The empirical analysis posits multiple policies regarding the reduction of external borrowings, enhancement of the quality of governance, and effective utilization of external debt for development projects through better governance systems. By exploring the empirical relationship between external debt, governance, and economic growth, this study provides original evidence on how to enhance the utilization of external debt to ensure economic growth. [ABSTRACT FROM AUTHOR] |
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Copyright of Eurasian Economic Review is the property of Springer Nature and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) |
| Database: |
Business Source Complete |
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