EXTERNAL DEBT, INSTITUTIONAL QUALITY AND ECONOMIC GROWTH

Authors

Siti Nurazira Mohd Daud, Universiti Utara Malaysia, MalaysiaFollow

Document Type

Article

Abstract

This paper addresses the gap in the literature by investigating the role of the institutional quality in the nexus of external debt and economic growth. By employing a dynamic panel data analysis, we found that the institutional quality plays some role in complementing the effect of external debt on a country’s economic growth. We also found that the negative effect of external debt and a country’s economic growth monotonically increases with the level of institutional indicator, which implies the possibility of debt overhang may still happen in economies endowed with good institutions, but for higher values of debt.

Recommended Citation

Mohd Daud, Siti Nurazira (2020) "EXTERNAL DEBT, INSTITUTIONAL QUALITY AND ECONOMIC GROWTH," Bulletin of Monetary Economics and Banking: Vol. 23: No. 2, Article 7.
DOI: https://doi.org/10.21098/bemp.v23i2.1173
Available at: https://bulletin.bmeb-bi.org/bmeb/vol23/iss2/7

First Page

221

Last Page

238

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Malaysia

Affiliation

Universiti Utara Malaysia