The Relation that between External Debt and Economic Growth: Turkey (2000:Q1-2019:Q3)

Hotunluoğlu, Hakan; Yavuzer, M. Taylan

doi:10.15869/itobiad.793027

Cited by 4 publications

(2 citation statements)

References 17 publications

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“…The use of some of the external debts to finance the investment positively affects the capital stock. On the other hand, Hotunluoğlu and Yavuzer (2020) found positive relationship between external debt and growth in the long term. Findings indicate that this process, which is called the "Debt Overhang Model", is valid for Turkey.…”

Section: Literaturementioning

confidence: 89%

Does External Debts Affect Economic Growth: The Case of E7 Countries

Özyılmaz

2022

Anemon Muş Alparslan Üniversitesi Sosyal Bilimler Dergisi

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Developing countries, which mostly face financing problems, often have to use external debt. On the one hand, external debt stands out as an important source of financing investments, but on the other hand, due to inefficient use or administrative failures, it may harm the macroeconomic indicators of countries, rather than benefit, with parameters such as exchange rate, bad governance and corruption. One of these macroeconomic indicators is undoubtedly economic growth. In this context, the effect of external debt on growth is discussed for the E7 countries in the 1992-2020 period. First of all, the relationship between external debt growth was examined using Westerlund cointegration analysis. According to, there is a long term co-integration relationship between foreign debt and economic growth in E7 countries. Common Correlated Effects Estimator (CCE) and Augmented Mean Group Estimator (AMG) models were used for the coefficient estimation. The findings obtained from both models indicate that external debt negatively affects growth.When the findings are analyzed by country, according to the AMG model, foreign aid affects growth negatively in China, India, Russia, Brazil and Mexico. According to the CCE model findings, foreign aid negatively affects growth in India, Brazil, Mexico and Indonesia. However, according to the findings of both models, the effect of foreign aid on growth in Turkey is statistically insignificant. Panel group analysis results support the debt overhang hypothesis for E7 countries

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Section: Literaturementioning

confidence: 89%

Does External Debts Affect Economic Growth: The Case of E7 Countries

Özyılmaz

2022

Anemon Muş Alparslan Üniversitesi Sosyal Bilimler Dergisi

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“…When the relevant literature is examined in detail, it is seen that most of the studies examining the relationship between Turkey's foreign debt and economic growth conclude that foreign borrowing has negative effects on economic growth. For example, although the number is less compared to the literature, Umutlu, Alizadeh, andErkılıç (2011), Çevik andCural (2013), Korkmaz (2015), Toktaş, Altiner and Bozkurt (2019) and Hotunluoğlu and Yavuzer (2020) have reached results that empirically prove that external debt has positive effects on economic growth. In addition to this situation, it is significant that the relevant literature is based on studies examining the effect of change in external debt on economic growth.…”

Section: Literature Reviewmentioning

confidence: 96%

The relationship between external debt and growth under the structural breaks in Turkey

Taş

EKMEKÇİLER

2022

bmij

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This study aims to investigate whether Turkey's external debt (by considering the debt maturity and ownership separately) has a relationship with economic growth and to explain the direction and size of these effects in case of their existence. At the same time, the relationship between consumption and investment, which are sub-items of growth, and external debt are also discussed. The data subject to the analysis in the study consists of gross domestic product and external debt data provided by the Central Bank of the Republic of Turkey Electronic Data Distribution System and covering the 1998Q1 and 2021Q4 periods. In this study, econometric methods, including both conventional and structural breaks, were used. According to the results, both short-term and long-term external debt significantly and positively affect gross domestic product, consumption and investment. In addition to this situation, it is seen that the effect of long-term external debts is more. However, it is also concluded that the effect of long-term external debt is greater. When evaluated separately on a sectoral basis, it is concluded that the significant and positive relationship between public sector external debt and economic growth and its sub-items is valid both in the short and long term. When the effect of external debt on investments is analyzed, it is seen that the effect of long-term external debt is more than short-term debt. The most important point to note here is that short-term private sector debt, which does not affect gross domestic product and consumption, has a significant effect on investment and is about three times the public sector short-term debt.

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The Relationship Between External Debt and Economic Growth: Analysis of BRICS-T Countries in Terms of Public and Private Sector External Debt

Yildiz

Sağdıç

2021

Alanya Akademik Bakış

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T ülkelerinde dış borç bileşenlerinin (Kamu ve özel sektör dış borçları) ekonomik büyüme üzerindeki etkisi incelenmiştir. Değişkenler arasındaki uzun ve kısa dönemli ilişki Havuzlanmış Ortalama Grup (PMG) Tahmincisi ile incelenmiştir. PMG tahmincisinden elde edilen sonuçlara göre tüm ülkeler bazında toplam dış borç, kamu dış borcu ve özel sektör dış borcunun ekonomik büyüme üzerinde uzun dönemde negatif etki gösterdiği tespit edilmiştir. Ayrıca, ekonomik büyüme üzerinde en yüksek olumsuz etkiye sahip borç bileşeni kamu dış borçlarıdır. Araştırmanın ampirik sonuçları, borçluluk düzeyi yüksek olan ülkelerin ekonomik büyüme olanaklarının kısıtlanacağını savunan "Borç Fazlası Hipotezi" ile uyumludur.

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The Relation that between External Debt and Economic Growth: Turkey (2000:Q1-2019:Q3)

Abstract: Bu makale, en az iki hakem tarafından incelenmiş ve intihal içermediği teyit edilmiştir. / This article has been reviewed by at least two referees and confirmed to include no plagiarism.

Cited by 4 publications

References 17 publications

Does External Debts Affect Economic Growth: The Case of E7 Countries

Does External Debts Affect Economic Growth: The Case of E7 Countries

The relationship between external debt and growth under the structural breaks in Turkey

The Relationship Between External Debt and Economic Growth: Analysis of BRICS-T Countries in Terms of Public and Private Sector External Debt

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