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External Debt and Growth in Developing Countries: A Sensitivity and Causal Analysis

Author

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  • Abdur Chowdhury

Abstract

The paper aims to enhance the existing literature on the debt-growth nexus by analysing the relationship in two separate country groups using the extreme bounds analysis for sensitivity tests and the mixed, fixed, and random coefficient approach that allows for heterogeneity in the causal relationship between debt and growth. Irrespective of the debt measure used, the results are robust across the two country groups—HIPC and non-HIPC—as well as two different testing procedures.

Suggested Citation

  • Abdur Chowdhury, 2001. "External Debt and Growth in Developing Countries: A Sensitivity and Causal Analysis," WIDER Working Paper Series DP2001-95, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:dp2001-95
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    File URL: https://www.wider.unu.edu/sites/default/files/dp2001-95.pdf
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