Jafar Zhilaei Aghdam, Ali Reza Daghighiasli, Marjan Daman Kashide, Ali Asmailpor Magari,
Volume 11, Issue 40 (6-2020)
The relationship between external debt and economic growth is one of the important issues in macroeconomics literature and has been considered in empirical studies. So, in this paper the long-run relationship among external government debt and economic growth in 58 selected developing countries for 1985-2018 by applying a pool mean group method which is suggested by Pesaran & Smith. The main empirical results showed that there is a long-run relationship between external debt and economic growth. Also, increase in growth in selected countries in addition to the influence of produce factors, labor, capital stock and monetary policy, influence of public debt. Also, capital stock, open economic, financial balance and saving variables has positive effect and population growth and Government revenue has negative effect on economic growth.
