All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

 
Taha Zaghdoudi and Abdelaziz Hakimi
 
''Does external debt- poverty relationship confirm the debtoverhang hypothesis for developing counties?''
( 2017, Vol. 37 No.2 )
 
 
This paper investigates the impact of external debt on poverty for a panel of 25 developing countries over the period 2000-2015. By performing panel cointegration model, we found strong evidence of a positive and significant long-run relationship between poverty, external debt, GDP per capita, gross domestic and fixed investment. Findings indicate also the existence of negative and significant association between poverty, infrastructure, health condition and openness. The Granger-causality results indicate bidirectional causality between external debt and poverty in both short- and long-run. This paper supports the view that external debt increase poverty in developing countries.
 
 
Keywords: Poverty, External debt
JEL: I3 - Welfare and Poverty: General
F3 - International Finance: General
 
Manuscript Received : Dec 28 2016 Manuscript Accepted : Apr 09 2017

  This abstract has been downloaded 145 times                The Full PDF of this paper has been downloaded 92701 times