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External Debt and Economic Growth in Turkey: An Empirical Analysis

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  • Tuncer GÖVDELİ

Abstract

This study analyzes the impact of external debt stock, openness and the consumer price index on economic growth, based on time series data obtained from the World Bank for the period from 1970 to 2016. For this report’s purpose, the stability of the series was analyzed. Having identified the series to have first degree l(1) stability, the ARDL bounds testing approach was applied and a relationship of cointegration was established. In light of these findings, it has been observed that external debt has a positive impact on economic growth, while openness and consumer price index have a negative impact. Therefore, this study recommends keeping openness and the consumer price index under control to increase economic growth with the help of external debt.

Suggested Citation

  • Tuncer GÖVDELİ, 2019. "External Debt and Economic Growth in Turkey: An Empirical Analysis," Sosyoekonomi Journal, Sosyoekonomi Society.
    • Handle: RePEc:sos:sosjrn:190207
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    References listed on IDEAS

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    Cited by:

    1. Sanele Stungwa, 2024. "Is external debt an impediment to the South African economy?," Public Sector Economics, Institute of Public Finance, vol. 48(1), pages 103-124.
    2. Stungwa, Sanele, 2022. "Empirical modeling of South Africa’s external debt on economic growth (1994 -2020): NARDL Cointegration approach," MPRA Paper 112527, University Library of Munich, Germany, revised 19 Mar 2022.
    3. Aruna Gounder & Priteshni Chand & Avineel Kumar, 2024. "Government Debt and Foreign Aid: Do They Matter for Economic Growth in Small Island Economies? Empirical Evidence from the Pacific Islands," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 8327-8348, June.

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    More about this item

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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