External debt and growth: role of stable macroeconomic policies

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Purpose: This study aims to examine the impact of external debt on economic growth in Bangladesh within a broader macroeconomic scenario. Design/methodology/approach: In the process of doing so, it assesses the empirical cointegration, long-run and short-run dynamics of the concerned variables for t...

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Detalles Bibliográficos
Autores: Dey, Sima Rani, Tareque, Mohammad
Formato: artículo
Fecha de Publicación:2020
Institución:Universidad ESAN
Repositorio:Revistas - Universidad ESAN
Lenguaje:inglés
OAI Identifier:oai:ojs.pkp.sfu.ca:article/39
Enlace del recurso:https://revistas.esan.edu.pe/index.php/jefas/article/view/39
Nivel de acceso:acceso abierto
Materia:External debt
Economic growth
Macroeconomic policy
ARDL
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oai_identifier_str oai:ojs.pkp.sfu.ca:article/39
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spelling External debt and growth: role of stable macroeconomic policiesDey, Sima RaniTareque, MohammadExternal debtEconomic growthMacroeconomic policyARDLPurpose: This study aims to examine the impact of external debt on economic growth in Bangladesh within a broader macroeconomic scenario. Design/methodology/approach: In the process of doing so, it assesses the empirical cointegration, long-run and short-run dynamics of the concerned variables for the period of 1980–2017 applying the autoregressive distributed lag (ARDL) bounds testing approach to cointegration. First, debt-gross domestic product linkage explores the impact of external debt impact on economic growth using a set of macro and country risk variables, and then this linkage is also analyzed along with a newly formed macroeconomic policy (MEP) variable using principal component analysis. Findings: The study results reveal the negative impact of external debt on GDP growth, but the larger positive impact of MEP index indicates that this adverse effect of debt can be mitigated or even nullified by sound MEP and appropriate human resource policy. Originality/value: The dynamic effects of different shocks (external debt and macro policy variable) on economic growth by vector autoregression impulse response function also confirm our ARDL findings. DOI: https://doi.org/10.1108/JEFAS-05-2019-0069Universidad ESAN2020-12-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionPeer-reviewed Articleapplication/pdfhttps://revistas.esan.edu.pe/index.php/jefas/article/view/39Journal of Economics, Finance and Administrative Science; Vol. 25 No. 50 (2020): July-December; 185-204Journal of Economics, Finance and Administrative Science; Vol. 25 Núm. 50 (2020): July-December; 185-2042218-06482077-1886reponame:Revistas - Universidad ESANinstname:Universidad ESANinstacron:ESANenghttps://revistas.esan.edu.pe/index.php/jefas/article/view/39/24Copyright (c) 2021 Journal of Economics, Finance and Administrative Sciencehttps://creativecommons.org/licenses/by/4.0info:eu-repo/semantics/openAccessoai:ojs.pkp.sfu.ca:article/392021-06-20T00:03:28Z
dc.title.none.fl_str_mv External debt and growth: role of stable macroeconomic policies
title External debt and growth: role of stable macroeconomic policies
spellingShingle External debt and growth: role of stable macroeconomic policies
Dey, Sima Rani
External debt
Economic growth
Macroeconomic policy
ARDL
title_short External debt and growth: role of stable macroeconomic policies
title_full External debt and growth: role of stable macroeconomic policies
title_fullStr External debt and growth: role of stable macroeconomic policies
title_full_unstemmed External debt and growth: role of stable macroeconomic policies
title_sort External debt and growth: role of stable macroeconomic policies
dc.creator.none.fl_str_mv Dey, Sima Rani
Tareque, Mohammad
author Dey, Sima Rani
author_facet Dey, Sima Rani
Tareque, Mohammad
author_role author
author2 Tareque, Mohammad
author2_role author
dc.subject.none.fl_str_mv External debt
Economic growth
Macroeconomic policy
ARDL
topic External debt
Economic growth
Macroeconomic policy
ARDL
description Purpose: This study aims to examine the impact of external debt on economic growth in Bangladesh within a broader macroeconomic scenario. Design/methodology/approach: In the process of doing so, it assesses the empirical cointegration, long-run and short-run dynamics of the concerned variables for the period of 1980–2017 applying the autoregressive distributed lag (ARDL) bounds testing approach to cointegration. First, debt-gross domestic product linkage explores the impact of external debt impact on economic growth using a set of macro and country risk variables, and then this linkage is also analyzed along with a newly formed macroeconomic policy (MEP) variable using principal component analysis. Findings: The study results reveal the negative impact of external debt on GDP growth, but the larger positive impact of MEP index indicates that this adverse effect of debt can be mitigated or even nullified by sound MEP and appropriate human resource policy. Originality/value: The dynamic effects of different shocks (external debt and macro policy variable) on economic growth by vector autoregression impulse response function also confirm our ARDL findings. DOI: https://doi.org/10.1108/JEFAS-05-2019-0069
publishDate 2020
dc.date.none.fl_str_mv 2020-12-01
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv https://revistas.esan.edu.pe/index.php/jefas/article/view/39
url https://revistas.esan.edu.pe/index.php/jefas/article/view/39
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv https://revistas.esan.edu.pe/index.php/jefas/article/view/39/24
dc.rights.none.fl_str_mv Copyright (c) 2021 Journal of Economics, Finance and Administrative Science
https://creativecommons.org/licenses/by/4.0
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Copyright (c) 2021 Journal of Economics, Finance and Administrative Science
https://creativecommons.org/licenses/by/4.0
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Universidad ESAN
publisher.none.fl_str_mv Universidad ESAN
dc.source.none.fl_str_mv Journal of Economics, Finance and Administrative Science; Vol. 25 No. 50 (2020): July-December; 185-204
Journal of Economics, Finance and Administrative Science; Vol. 25 Núm. 50 (2020): July-December; 185-204
2218-0648
2077-1886
reponame:Revistas - Universidad ESAN
instname:Universidad ESAN
instacron:ESAN
instname_str Universidad ESAN
instacron_str ESAN
institution ESAN
reponame_str Revistas - Universidad ESAN
collection Revistas - Universidad ESAN
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 12.789436
External debt and growth: role of stable macroeconomic policies
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