Public and publicly guaranteed external debt, debt servicing and investment in emerging economies
The global financial crisis of 2007 gave a major boost to the debt-investment nexus debate given the astronomical growth in external debt and its associated debt servicing burdens, which constrain the fiscal space of many developed and emerging economies. Hence, this study examined the effe...
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| Format: | Article |
| Language: | English |
| Published: |
Faculty of Economics, Belgrade
2024-01-01
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| Series: | Ekonomski Anali |
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| Online Access: | https://doiserbia.nb.rs/img/doi/0013-3264/2024/0013-32642440031O.pdf |
| _version_ | 1797215516232777728 |
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| author | Omosuyi Oluseyi |
| author_facet | Omosuyi Oluseyi |
| author_sort | Omosuyi Oluseyi |
| collection | DOAJ |
| description | The global financial crisis of 2007 gave a major boost to the debt-investment
nexus debate given the astronomical growth in external debt and its
associated debt servicing burdens, which constrain the fiscal space of many
developed and emerging economies. Hence, this study examined the effect of
external debt and debt servicing on investment in MINT countries for the
period, 1990-2021 using the FMOLS estimation technique. The results show
that external debt adversely affects investment in Indonesia but stimulates
investment in Türkiye while debt servicing has a catastrophic effect on
investment in Indonesia and Türkiye but enhances investment in Nigeria.
Overall, the effect of external debt and debt servicing on investment in
MINT countries are mixed. Hence, the policymakers in each country need to
put measures in place to foster debt sustainability, ensure effective
domestic resource mobilisation for investment purposes and promote debt
transparency by adopting effective debt management practices. |
| first_indexed | 2024-04-24T11:31:18Z |
| format | Article |
| id | doaj.art-c1a19ce3a4a646c0b86e3cadae394202 |
| institution | Directory Open Access Journal |
| issn | 0013-3264 1820-7375 |
| language | English |
| last_indexed | 2024-04-24T11:31:18Z |
| publishDate | 2024-01-01 |
| publisher | Faculty of Economics, Belgrade |
| record_format | Article |
| series | Ekonomski Anali |
| spelling | doaj.art-c1a19ce3a4a646c0b86e3cadae3942022024-04-10T10:15:56ZengFaculty of Economics, BelgradeEkonomski Anali0013-32641820-73752024-01-0169240315610.2298/EKA2440031O0013-32642440031OPublic and publicly guaranteed external debt, debt servicing and investment in emerging economiesOmosuyi Oluseyi0https://orcid.org/0000-0003-0926-0530Economic and Business Policy Department, Nigerian Institute of Social and Economic Research, Ibadan, NigeriaThe global financial crisis of 2007 gave a major boost to the debt-investment nexus debate given the astronomical growth in external debt and its associated debt servicing burdens, which constrain the fiscal space of many developed and emerging economies. Hence, this study examined the effect of external debt and debt servicing on investment in MINT countries for the period, 1990-2021 using the FMOLS estimation technique. The results show that external debt adversely affects investment in Indonesia but stimulates investment in Türkiye while debt servicing has a catastrophic effect on investment in Indonesia and Türkiye but enhances investment in Nigeria. Overall, the effect of external debt and debt servicing on investment in MINT countries are mixed. Hence, the policymakers in each country need to put measures in place to foster debt sustainability, ensure effective domestic resource mobilisation for investment purposes and promote debt transparency by adopting effective debt management practices.https://doiserbia.nb.rs/img/doi/0013-3264/2024/0013-32642440031O.pdfexternal debtdebt servicinginvestmentfmolsmint |
| spellingShingle | Omosuyi Oluseyi Public and publicly guaranteed external debt, debt servicing and investment in emerging economies Ekonomski Anali external debt debt servicing investment fmols mint |
| title | Public and publicly guaranteed external debt, debt servicing and investment in emerging economies |
| title_full | Public and publicly guaranteed external debt, debt servicing and investment in emerging economies |
| title_fullStr | Public and publicly guaranteed external debt, debt servicing and investment in emerging economies |
| title_full_unstemmed | Public and publicly guaranteed external debt, debt servicing and investment in emerging economies |
| title_short | Public and publicly guaranteed external debt, debt servicing and investment in emerging economies |
| title_sort | public and publicly guaranteed external debt debt servicing and investment in emerging economies |
| topic | external debt debt servicing investment fmols mint |
| url | https://doiserbia.nb.rs/img/doi/0013-3264/2024/0013-32642440031O.pdf |
| work_keys_str_mv | AT omosuyioluseyi publicandpubliclyguaranteedexternaldebtdebtservicingandinvestmentinemergingeconomies |