Effect of Remittance Inflows on External Debt in Developing Countries

Mijiyawa, Abdoul’ Ganiou; Oloufade, Djoulassi K.

doi:10.1007/s11079-022-09675-5

Cited by 9 publications

(11 citation statements)

References 31 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This significant outcome is also consistent with results from previous studies Waheed 2017;Beyene and Kotosz 2020;Sa gdiç and Yildiz 2020;Dawood et al 2021;Mensah et al 2017;Nguyen and Luong 2021;Omar and Ibrahim 2021;Okwoche and Nikolaidou 2022). Some studies yielded an insignificant portion or all of the variables (Abdullahi et al 2015;Gokmenoglu and Rafik 2018;Brafu-Insaidoo et al 2019;Mijiyawa and Oloufade 2023).…”

Section: Discussionsupporting

confidence: 92%

“…Exchange rate has a positive effect on external debt. The positive effect of the exchange rate on external debt follows previous research Dawood et al 2021;Mijiyawa and Oloufade 2023). Our result rejects that of , who obtained a positive relationship that was not significant; the results of research by Abdullahi et al (2015), who obtained a negative effect; and Gokmenoglu and Rafik (2018), who obtained an insignificant negative relationship.…”

Section: Discussioncontrasting

confidence: 60%

“…An increase in the exchange rate weakens their ability to pay. There are research results that show a positive effect of exchange rate on external debt (Dawood et al 2021;Omar and Ibrahim 2021;Mijiyawa and Oloufade 2023) while others have a negative effect (Abdullahi et al 2015;Gokmenoglu and Rafik 2018).…”

Section: Exchange Rate and External Debtmentioning

confidence: 99%

“…This surplus between savings and investment provides funds for the government and reduces dependence on external parties. There are research results that show a negative effect of interest rate on external debt (Abdullahi et al 2015;Waheed 2017;) while others show a positive effect (Brafu-Insaidoo et al 2019;Mijiyawa and Oloufade 2023).…”

Section: Interest Rate and External Debtmentioning

confidence: 99%

“…explained that trade openness influences the budget deficit through three channels: increased corruption, a change in the supply-demand equilibrium, and a decrease in the government's ability to collect taxes. There are research results that show a positive effect of trade openness on external debt (Dawood et al 2021;Omar and Ibrahim 2021;Mijiyawa and Oloufade 2023) while others show a negative effect Brafu-Insaidoo et al 2019;Beyene and Kotosz 2020).…”

Section: Trade Openness and External Debtmentioning

confidence: 99%

See 4 more Smart Citations

External Debt Determinants: Do Macroeconomic and Institutional Ones Matter for Selected ASEAN Developing Countries?

Harsono,

Kusumawati,

Nirwana

2023

Economies

View full text Add to dashboard Cite

Developing nations have the task of effectively managing their external debt. The government is urged to comprehend the decisive component in managing its external debt, despite the varying viewpoints among economists. In addition, the world sees the need for institutional quality to optimize its economic policy. Institutional quality shows accountability, stability, effectiveness, quality, law, and trust. Our research examines the determinant factors of external debt and discusses the policy to manage external debt. We regress the inflation rate, exchange rate, interest rate, trade openness, and institutional quality on external debt. This study also uses moderated regression analysis to examine the interaction between institutional quality and macroeconomic indicators on external debt. We selected 52 samples from five ASEAN developing countries from 2008 to 2019. The first study found that the inflation rate, interest rate, and institutional quality have a negative impact on external debt, while the exchange rate and trade openness have a positive impact on external debt. Next, we were surprised that institutional quality could not moderate the relationship between the inflation rate, exchange rate, and interest rate on external debt. Further, it only moderated the relationship between trade openness and external debt. In the end, we discuss the external debt determinants from the selected ASEAN developing countries with the theories.

show abstract