The results of OLS also revealed that external debt possessed a negative impact on economic growth while domestic debt has impacted positively on economic growth (GDP). GNP growth and foreign indebtedness in middle-income developing countries, Int.
A good performance of an economy in terms of per capita growth may therefore be attributed to the level of domestic debt and not on the level of external debt in the country; therefore external debt is seen as inimical to the economic progress of a country.
The effects of debt burden on economic growth in heavily indebted Nations.
Debt relief and social services expenditure: The African experience 1989-2003.
Investigating causal relationships by econometric models and cross spectral methods.
4th Edn., Tata Mc Graw Hill Publishing Company Limited, New Delhi, India.
Foreign indebtedness in low and middle income developing countries.
Growth and foreign indebtedness in developing countries: An empirical study using long term cross-country data.
Distribution of the estimators for autoregressive ime series with a unit root.
United Nations University, Helsinki, (Unpublished Manuscript).