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Abstract
The study investigates the relationship between external debt and economic development in Asian countries. The study adopts a quantitative research approach, utilizing statistical analysis to examine the relationship between external debt and economic
development in Asia. The outcome of the study revealed that external debt has a negative impact on GDP growth rate(D(GDPGR) and was statistically significant at 5% level. Inflation have negative impact on GDP growth rate ; and statistically significant at the
conventional significance level of 0.05; poverty rate was found to have negative impact on GDP growth rate while holding other variables constant and this variable was statistically significant at 5%. The study however recommends that policymakers should exercise caution when accumulating external debt. It's essential to ensure that external borrowing is used for productive investments that generate economic returns to cover debt servicing costs;continue to monitor and manage inflation to ensure it remains within an acceptable range. High and volatile inflation can disrupt economic stability and erode the purchasing power of citizens. Policymakers should prioritize poverty alleviation measures as an integral part of economic development strategies and ef orts to reduce poverty can include targeted social programs, job creation initiatives, and access to education and healthcare. Develop economic policies that promote inclusive growth, ensuring that the benefits of economic development are distributed more equitably across society.
development in Asia. The outcome of the study revealed that external debt has a negative impact on GDP growth rate(D(GDPGR) and was statistically significant at 5% level. Inflation have negative impact on GDP growth rate ; and statistically significant at the
conventional significance level of 0.05; poverty rate was found to have negative impact on GDP growth rate while holding other variables constant and this variable was statistically significant at 5%. The study however recommends that policymakers should exercise caution when accumulating external debt. It's essential to ensure that external borrowing is used for productive investments that generate economic returns to cover debt servicing costs;continue to monitor and manage inflation to ensure it remains within an acceptable range. High and volatile inflation can disrupt economic stability and erode the purchasing power of citizens. Policymakers should prioritize poverty alleviation measures as an integral part of economic development strategies and ef orts to reduce poverty can include targeted social programs, job creation initiatives, and access to education and healthcare. Develop economic policies that promote inclusive growth, ensuring that the benefits of economic development are distributed more equitably across society.
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