Impact of Inflation, Exchange Rates, and Interest Rates on Public Debt: An Econometric Analysis of Developing Countries
(Pages 8-15)Nouhaila Belfatmi* and Hicham Ouakil
Laboratory of Economic and Public Political Sciences, Université Ibn-Tofail
DOI: https://doi.org/10.55365/1923.x2025.23.02
Abstract:
The objective of this article is to analyze the impact of exchange rates, inflation, and interest rates on pub
lic debt in developing countries, with particular focus on Morocco. This analysis incorporates a range of macroeconomic control variables to provide a more comprehensive understanding of the underlying dynamics. To achieve this, the panel data econometric method, specifically the System GMM approach developed by Blundell and Bond (1998), has been employed. This method is particularly suited to address issues of endogeneity and simultaneity bias commonly encountered in macroeconomic studies.
To analyze the impact of monetary variables on public debt, the panel data method was applied to a sample of 47 developing countries, covering the period from 1990 to 2022.
Keywords:
Public Debt, Monetary Variables, Panel Data, System GMM.
How to Cite:
Nouhaila Belfatmi and Hicham Ouakil. Impact of Inflation, Exchange Rates, and Interest Rates on Public Debt: An Econometric Analysis of Developing Countries. [ref]: vol.23.2025. available at: https://refpress.org/ref-vol23-a2/
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.