FACTORS AFFECTING EXTERNAL DEBT IN TRANSITION ECONOMIES: THE CASE OF CENTRAL ASIA AND THE CAUCASUS

Year 2020, Volume: 16 Issue: 4, 891 - 909, 31.12.2020

Ersin Nail Sağdıç Fazlı Yıldız

https://doi.org/10.17130/ijmeb.853521

Cited By: 2

Abstract

This study is to examine the key factors affecting external debts for the Central Asia and the
Caucasus economies between the years 1995-2017 by using panel data analysis. Panel regression results
show that public expenditures and the debt service have positive effect on external debt, while current
account of the balance, inflation rate and domestic savings have a negative, and also significant effect
on external debt. The results of this study show that foreign debt is being used as a significant source
of financing for public expenditures, foreign debt repayments, and the current account deficit in the
countries of Central Asia and the Caucasus.

Keywords

External Debt, Panel Data Analysis, Transition Economies, Central Asia and the Caucasus Economies

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