IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v6y2022i1p392-400.html
   My bibliography  Save this article

Does External Debts Promote Sustainable Economic Development in Developing Countries?

Author

Listed:
  • James Daniel Chindengwike

    (Department of Finance, Accounting and Economics, Faculty of Commerce and Business Studies, St. John’s University of Tanzania – Dodoma, Tanzania)

Abstract

External debts is one of the major sources of revenue to developing nations that normally do not have an enough industrial support and is illustrated by a small human development index. The aim of this paper is to test whether external debts promote sustainable economic development in developing countries or not. The study opted a time series data research design where by secondary data were used. This study used economic data from 1999-2020 financial years (Quarterly data). The study involved 80 observations. Kenya was purposively sampled to be used as research area of this study. The data collected from different reliable sources which included the International Financial Statistics (IFS), World Bank’s Statistical Database, The Treasury of Kenya, Ministry of Devolution and Planning and the Kenya National Bureau of Statistics. The results of the study revealed that there is long – term associations between external debts and sustainable economic development with P- Value of 0.0001. Another finding revealed that there is statistical significantly in all other macro-economic variables in the predictable direction with P- Value of 0.0011, except broad inflation and money that have vague signs. In short-run revealed that external debts affect statistically significance economic development with a negative direction P- Value of 0.0064. The study recommends that the government should think about adopting other sources of finance articulate via taxation and reduce borrowing outside to minimize assistance from developed nations. The government should also assign extra resources to savings in human capital education as efficiently labor has the effect of promoting sustainable economic development crosswise all models in the short run. Particularly population expansion rate should be proscribed through increasing utilize of social services such as family planning or sensitization to reduce support pressure on imperfect resources which deject economic development.

Suggested Citation

  • James Daniel Chindengwike, 2022. "Does External Debts Promote Sustainable Economic Development in Developing Countries?," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(1), pages 392-400, January.
    • Handle: RePEc:bcp:journl:v:6:y:2022:i:1:p:392-400
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-6-issue-1/392-400.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/virtual-library/papers/does-external-debts-promote-sustainable-economic-development-in-developing-countries/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Justin Yifu Lin, 2011. "New Structural Economics: A Framework for Rethinking Development," The World Bank Research Observer, World Bank, vol. 26(2), pages 193-221, August.
    2. Ruchi Tyagi, 2012. "Meerut Embroidery Cluster: A Case Study," South Asian Journal of Business and Management Cases, , vol. 1(2), pages 185-202, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Muhammad, Tufail & Ni, Guohua & Chen, Zhenling & Mallek, Sabrine & Dudek, Marek & Mentel, Grzegorz, 2024. "Addressing resource curse: How mineral resources influence industrial structure dynamics of the BRI 57 oil-exporting countries," Resources Policy, Elsevier, vol. 99(C).
    2. Paul - Bogdan Zamfir, 2015. "The Stimulation Of Inovation In The Romanian Enterprises On The Coordinates Of Sustainable Development," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 86-89, June.
    3. Suwan Lu & Guobin Fang & Mingtao Zhao, 2023. "Towards Inclusive Growth: Perspective of Regional Spatial Correlation Network in China," Sustainability, MDPI, vol. 15(7), pages 1-19, March.
    4. Li, Aitong & Xu, Yuan & Shiroyama, Hideaki, 2019. "Solar lobby and energy transition in Japan," Energy Policy, Elsevier, vol. 134(C).
    5. Tim Kelsall, 2012. "Neo-Patrimonialism, Rent-Seeking and Development: Going with the Grain?," New Political Economy, Taylor & Francis Journals, vol. 17(5), pages 677-682, November.
    6. Pi, Jiancai & Zhang, Pengqing, 2018. "Skill-biased technological change and wage inequality in developing countries," International Review of Economics & Finance, Elsevier, vol. 56(C), pages 347-362.
    7. Peter Mayerhofer, 2013. "Wiens Industrie in der wissensbasierten Stadtwirtschaft. Wandlungsprozesse, Wettbewerbsfähigkeit, industriepolitische Ansatzpunkte," WIFO Studies, WIFO, number 57934.
    8. Zhao, Qiuyun & Liu, Fan & Liu, Zhenhai & Zheng, Jie, 2024. "Transforming capital: The role of human capital structure in modulating environmental outcomes across economic transitions," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 398-412.
    9. -, 2012. "Changement structurel pour l'égalité: Une vision intégrée du développement. Trente-quatrième session de la CEPALC. Synthèse," Documentos de posición del período de sesiones de la Comisión 13950, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    10. Justin Yifu Lin, 2013. "Demystifying the Chinese Economy," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 46(3), pages 259-268, September.
    11. Sèna Kimm Gnangnon, 2020. "Comparative Advantage Following (CAF) development strategy, Aid for Trade flows and structural change in production," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-29, December.
    12. de Vries, Gaaitzen J. & Erumban, Abdul A. & Timmer, Marcel P. & Voskoboynikov, Ilya & Wu, Harry X., 2012. "Deconstructing the BRICs: Structural transformation and aggregate productivity growth," Journal of Comparative Economics, Elsevier, vol. 40(2), pages 211-227.
    13. Pi, Jiancai & Zhang, Pengqing, 2021. "Redistribution and wage inequality," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 510-523.
    14. Tingting Li & Hongwei Lu & Qiyou Luo & Guojing Li & Mingjie Gao, 2024. "The Impact of Rural Population Aging on Agricultural Cropping Structure: Evidence from China’s Provinces," Agriculture, MDPI, vol. 14(4), pages 1-19, April.
    15. Wei Dong & Xiaomi Hou & Guowei Qin, 2023. "Research on the Carbon Emission Reduction Effect of Green Taxation under China’s Fiscal Decentralization," Sustainability, MDPI, vol. 15(5), pages 1-19, March.
    16. Matthias Firgo & Peter Mayerhofer, 2015. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 1: Wissens-Spillovers und regionale Entwicklung – Welche strukturpolitische Ausrichtung optimiert das Wach," WIFO Studies, WIFO, number 58342.
    17. Lili Wang & Yi Wen, 2018. "Escaping the Middle-Income Trap: A Cross-Country Analysis on the Patterns of Industrial Upgrading," Working Papers 2018-1, Federal Reserve Bank of St. Louis.
    18. Hidalgo, César A., 2023. "The policy implications of economic complexity," Research Policy, Elsevier, vol. 52(9).
    19. Zhang, Gaofei & Li, Jingyi & Ma, Jing & Liu, Zhenhai, 2024. "Pro-growth or limit-on: How environmental regulations affect residents' well-being," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1509-1520.
    20. Dai, Wei & Ni, Zhongxin & Yu, Enping, 2024. "Quenching thirst, easing debt: Improvement in water resource endowment alleviates local government debt risk," China Economic Review, Elsevier, vol. 88(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:6:y:2022:i:1:p:392-400. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.