Does external debt as a new determinants of fiscal policy influence sustainable economic growth: implications after COVID-19

Fengsheng Chien (), Ka Yin Chau (), Talla M. Aldeehani (), Pham Quang Huy (), Luc Phan Tan () and Muhammad Mohsin ()
Additional contact information
Fengsheng Chien: Fuzhou University of International Studies and Trade
Ka Yin Chau: City University of Macau
Talla M. Aldeehani: Kuwait University
Pham Quang Huy: University of Economics Ho Chi Minh City (UEH)
Luc Phan Tan: Thu Dau Mot University
Muhammad Mohsin: Jiangsu University

Economic Change and Restructuring, 2022, vol. 55, issue 3, No 17, 1717-1737

Abstract: Abstract External debt correlation and the sustainable economic development pathway within the South Asian sub-region is analysed in this research paper. The longitudinal root-analysis, the pooled ordinary least square, quantile estimation, and output estimation were utilized to evaluate the data obtained from the World Bank Development Indicators for the period of 2000–2018. We discovered that total external debt and external debt services affect 39% plus 31%, respectively, after the robust regression analysis was carried out. Besides that, the findings demonstrate direct expansionary impacts of fiscal policy crosswise in developing economies within the study timeframe. Remarkably, the advancements in state establishments encourage the “gathering impact” of fiscal policy implementation. The findings depict that the entire circumstances set a stiffer restraint on public expenditure, indicating a self-losing fiscal austerity situation which entails the impact of the company’s liabilities. Inversely, the unrestrained countercyclical policy bars the knock-on impact of external problems, resulting in an improved economic system activity performance as well as decreasing the probability of economic predicaments after COVID-19.

Keywords: Sustainable economic growth; Resources policy; Econometric estimation; External debt (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://link.springer.com/10.1007/s10644-021-09365-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:ecopln:v:55:y:2022:i:3:d:10.1007_s10644-021-09365-1

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/10644/PS2

DOI: 10.1007/s10644-021-09365-1

Access Statistics for this article

Economic Change and Restructuring is currently edited by George Hondroyiannis

More articles in Economic Change and Restructuring from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().