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External debts and real exchange rates in developing countries: evidence from Chad

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  • Kouladoum, Jean-Claude

Abstract

The objective of this work is to analyze the effect to external debts on the real exchange rate rate in Chad from 1975 to 2014. The generalized method of moment is used. Findings show that external debts positively and significantly affect the real exchange rate at 5% significant level. Moreover, debt servicing affects negatively and significantly real exchange rate. The main recommandation goes to Chadian government, it should adopt a budgetary policy, in such a way to reorient its debt towards economic sectors that is able to boost economic growth and reinforce that the strategies contribute re-equilibrate industrial activities.

Suggested Citation

  • Kouladoum, Jean-Claude, 2018. "External debts and real exchange rates in developing countries: evidence from Chad," MPRA Paper 88440, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:88440
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    References listed on IDEAS

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    5. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
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    Cited by:

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    2. Peter E. Ayunku & Dumani Markjackson, 2020. "Impact of External Debt on Nigeria’s Foreign Reserve Portfolios," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 7(1), pages 1-7.
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    More about this item

    Keywords

    External debts; real exchange rate; debt servicing; econmic growth.;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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