Year: 2024
Type: article
Abstract: External debt serves as a significant financial tool within fiscal policy for various reasons, including the shortfall of public revenues to cover expenditures, inadequate domestic savings, financing economic development and growth, addressing extraordinary expenses, and managing current account deficits. The impact of external debt on the economy hinges on its effective utilization. The use of external debt to finance economic development and growth has positive effects on the economy. In the literature, studies examining the relationship between external debt and economic growth have reached different results. While some of the studies have found that external debt has a positive effect on economic growth, other studies have found that external debt has a negative effect on economic growth. This study employs the Fourier ARDL approach to investigate the influence of external debt on economic growth in Türkiye during the period 1980-2022. The findings reveal the absence of a long-term relationship between external debt and economic growth in Türkiye over the specified period.
Author: Adil Akıncı
Institution: Bilecik Şeyh Edebali Üniversitesi
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W4405700111