{"title":"External debt crisis & socio-economic fallout: Evidence from the BRICS nations","authors":"Ajaz Ayoub , Tahir Ahmad Wani , Abid Sultan","doi":"10.1016/j.rspp.2024.100029","DOIUrl":null,"url":null,"abstract":"<div><p>This paper aims to investigate how external debt influences selected socio-economic variables in a sample of the five biggest emerging nations of the world, i.e., the BRICS block from 1996 to 2020. The data was found to have cross-sectional dependence, which was addressed by using second-generation unit root tests of CIPS and CADF. Cross-sectional dependence was further effectively addressed using the techniques of FMOLS. The study uses the ARDL models to achieve the desired objective. Dumitrescu Hurlin’s (DH) panel causality analysis was adopted to analyze the variables' causality. The study found that, in the long run, External Debt has a positive impact on Unemployment and Life Expectancy while it has a negative impact on Net National Income. The results are also consistent in the short run, except in the case of unemployment, which has been shown to reduce with an increase in the external debt component of the country.</p></div>","PeriodicalId":45520,"journal":{"name":"Regional Science Policy and Practice","volume":"16 6","pages":"Article 100029"},"PeriodicalIF":1.7000,"publicationDate":"2024-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S1757780224000647/pdfft?md5=482879b535aa8e1b003456448939f488&pid=1-s2.0-S1757780224000647-main.pdf","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Regional Science Policy and Practice","FirstCategoryId":"1085","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1757780224000647","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"GEOGRAPHY","Score":null,"Total":0}
引用次数: 0
Abstract
This paper aims to investigate how external debt influences selected socio-economic variables in a sample of the five biggest emerging nations of the world, i.e., the BRICS block from 1996 to 2020. The data was found to have cross-sectional dependence, which was addressed by using second-generation unit root tests of CIPS and CADF. Cross-sectional dependence was further effectively addressed using the techniques of FMOLS. The study uses the ARDL models to achieve the desired objective. Dumitrescu Hurlin’s (DH) panel causality analysis was adopted to analyze the variables' causality. The study found that, in the long run, External Debt has a positive impact on Unemployment and Life Expectancy while it has a negative impact on Net National Income. The results are also consistent in the short run, except in the case of unemployment, which has been shown to reduce with an increase in the external debt component of the country.
期刊介绍：
Regional Science Policy & Practice (RSPP) is the official policy and practitioner orientated journal of the Regional Science Association International. It is an international journal that publishes high quality papers in applied regional science that explore policy and practice issues in regional and local development. It welcomes papers from a range of academic disciplines and practitioners including planning, public policy, geography, economics and environmental science and related fields. Papers should address the interface between academic debates and policy development and application. RSPP provides an opportunity for academics and policy makers to develop a dialogue to identify and explore many of the challenges facing local and regional economies.
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