Is Really Debt a Man's Whip?

There is a growing concern for ever increasing external debt stock of countries in the worldwide. Coupled with resent global crises, the sustainability and efficient use of external debt becomes more and more important. To this end, we have tested the hypothesis of external debt led growth hypothesis for the case of Turkish economy. Our result has confirmed that Turkey's external debt both sustainable and efficiently used, at least for the last decade or so. The overall result proves also the reality of Turkish proverb “debt is a man's whip”.