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Would external debts promote sustainable development in emerging and low‐income countries?

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  • Hiep Ngoc Luu
  • Nguyen Hanh Luu
  • Huong Thi Thu Phung

Abstract

This paper investigates how external debts influence sustainable development in emerging economies and low‐income countries from 101 countries from 2016 to 2020. External debt significantly aids countries in achieving their sustainable development goals but affects individual goal differently. While external debts promote well‐being, education quality, gender equality, employment, economic growth, and institutional strength, they negatively affect the sustainability of cities, communities, and ecosystems. Long‐term external and public debts make a significant contribution to promoting sustainable development, but excessive external borrowing could hamper sustainable development progress.

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  • Hiep Ngoc Luu & Nguyen Hanh Luu & Huong Thi Thu Phung, 2024. "Would external debts promote sustainable development in emerging and low‐income countries?," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(2), pages 1110-1128, March.
    • Handle: RePEc:wly:jintdv:v:36:y:2024:i:2:p:1110-1128
    DOI: 10.1002/jid.3840
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