International Conference on Eurasian Economies
5-7 October 2017 – Bishkek, KYRGYZSTAN
Paper detail
Paper ID : 1998
Status : Paper published
Language : Turkish
Topic : Regional Economics
Presenter: Asst. Prof. Dr. Junus Ganiev
Session : 5C Kalkınma
The Impact of Foreign Debt and Foreign Investments on Total Output: Kyrgyzstan Case
Dış Borç ve Yabancı Yatırımların Toplam Çıktıya Etkisi: Kırgızistan Örneği
- Asst. Prof. Dr. Junus Ganiev (Kyrgyz-Turkish Manas University, Kyrgyzstan)
- Asst. Prof. Dr. Damira Baigonushova (Kyrgyz-Turkish Manas University, Kyrgyzstan)
- Ph.D. candidate Mairam Baigonusheva (Marmara University, Türkiye)
Abstract
This paper aims to investigate the impact of foreign debt and foreign direct investments on GDP in Kyrgyzstan. Annual data for the period 1995-2016 and the ARDL cointegration approach were used in the study to analyze the relationship between foreign debt, foreign direct investment and gross domestic product. As a result, it was found a cointegration relation between foreign direct investment and GDP. According to the coefficient value, a $1 increase in foreign direct investments leads to a $4.4 increase in total output in the long run. That is, the increase in foreign direct investments makes a significant contribution to the country’s economy and welfare level. On the other hand, we could not find any statistically significant effect of external debt on total output. From the results obtained in the study, it is proposed that the government should give more importance to foreign direct investments than external debt in foreign resource selection. It is obvious that more effective steps should be taken in attracting domestic and foreign private capital to infrastructure investments such as roads and dams, especially by using “public private cooperation” methods.
JEL codes:
Ganiev, Junus, Baigonushova, Damira, Baigonusheva, Mairam (2017). "The Impact of Foreign Debt and Foreign Investments on Total Output: Kyrgyzstan Case" in Proceedings of International Conference of Eurasian Economies 2017, pp.358-365, Bishkek, KYRGYZSTAN.
DOI: https://doi.org/10.36880/C09.01998
