External Debt Distress in South Asia: Evidence from Panel Data Analysis

IF 0.6 Q4 ECONOMICS South Asian Journal of Macroeconomics and Public Finance Pub Date : 2020-12-01 DOI:10.1177/2277978720966485

Shujaat Abbas, S. Wizarat, Sadia Mansoor

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引用次数: 2

Abstract

This study is an attempt to explore social and economic determinants of external debt distress in five selected South Asian countries, that is, Bangladesh, India, Nepal, Pakistan and Sri Lanka, from 1980 to 2018, by using the contemporary panel fixed effect model and system generalized methods of moments. The findings revealed that the major determinants of external debt distress in selected South Asian countries are large and increasing current account deficits, lower gross capital formation, foreign direct investment and large military expenditures. Among selected socio-economic variables, the increase in life expectancy increases external debt distress, whereas urbanization reduces it considerably. The study urges selected South Asian countries to correct highly unfavourable current account balance, resolve regional conflicts leading to the reduction of the arms race and make the macroeconomic environment friendly for domestic and foreign investment to reduce exploding external debt distress. JEL Classification: C33, E22, F32, H63

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南亚的外债困境：来自面板数据分析的证据

本研究试图利用当代面板固定效应模型和系统广义矩方法，探讨1980-2018年孟加拉国、印度、尼泊尔、巴基斯坦和斯里兰卡五个南亚国家外债困境的社会和经济决定因素。调查结果显示，某些南亚国家外债困境的主要决定因素是经常账户赤字庞大且不断增加、资本形成总额下降、外国直接投资和巨额军事支出。在选定的社会经济变量中，预期寿命的增加增加了外债困境，而城市化大大减少了外债困境。该研究敦促选定的南亚国家纠正极为不利的经常账户平衡，解决导致军备竞赛减少的区域冲突，并为国内外投资创造有利的宏观经济环境，以减少激增的外债困境。JEL分类：C33、E22、F32、H63

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来源期刊

South Asian Journal of Macroeconomics and Public Finance ECONOMICS-

CiteScore

2.10

自引率

11.10%

发文量

期刊介绍： The purpose of the Journal is to publish (in English language) peer-reviewed articles, reviews and scholarly comments on issues relating to contemporary global macroeconomics and public finance by which is understood: The Journal is for all professionals concerned with contemporary Macroeconomics and Public Finance and is a forum for all views on related subjects. The Editorial Board welcomes articles of current interest on research and application on the areas mentioned above. The Journal will be international in the sense that it seeks research papers from authors with an international reputation and articles that are of interest to an international audience. In pursuit of the above, the journal shall: a. draw on and include high quality work from the international community of scholars including those in the major countries of Asia, Europe, Asia Pacific, the United States, other parts of the Americas and elsewhere with due representation for considerations of the readership. The Journal shall include work representing the major areas of interest in contemporary research on Macroeconomics and Public Finance and on a wide range of issues covering macro- economics, tax and fiscal issues, banking and finance, international trade, labour economics, computational and mathematical methods, etc. The Journal would particularly engage papers on pure and applied economic theory and econometric methods. b. avoid bias in favour of the interests of particular schools or directions of research or particular political or narrow disciplinary objectives to the exclusion of others. c. ensure that articles are written in a terminology and style which makes them intelligible, not merely within the context of a particular discipline or abstract mode, but across the domain of relevant disciplines.