The Causal Relationship between Macroeconomic Factors and External Debt in Bangladesh: An Econometric Analysis
(Pages 264-272)Niluthpaul Sarker1,* and Probir Kumar Bhowmik2
1Department of Accounting & Information Systems, Jagannath University, Dhaka, Bangladesh
2Department of Accounting & Information Systems, University of Barishal, Barishal, Bangladesh
DOI: https://doi.org/10.55365/1923.x2024.22.28
Abstract:
This paper investigates the causal relationship between macroeconomic factors and external debt in Bangladesh through an econometric analysis. Using annual time series data from 1986 to 2018, the study employs the FOLS model to examine the relationship between external debt and macroeconomic variables like interest rate, exchange rate, LIBOR rate, GDP growth, inflation rate, etc. The study identifies that external debt is influenced by macroeconomic variables significantly. The study's results have practical implications for regulators, assisting them in developing strategies to handle external debt and ensure sustainable economic development. This stresses the value of the research to the audience and keeps them interested in the study's findings.
Keywords:
External debt, Economic growth, Fully Modified Least Squares (FMOLS), Bangladesh.
How to Cite:
Niluthpaul Sarker and Probir Kumar Bhowmik. The Causal Relationship between Macroeconomic Factors and External Debt in Bangladesh: An Econometric Analysis. [ref]: vol.22.2024. available at: https://refpress.org/ref-vol22-a28/
Licensee REF Press This is an open access article licensed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/3.0/) which permits unrestricted, non-commercial use, distribution and reproduction in any medium, provided the work is properly cited.