International Conference on Eurasian Economies
5-7 October 2017 – Bishkek, KYRGYZSTAN
Paper detail
Paper ID : 2019
Status : Paper published
Language : Turkish
Topic : Growth and Development
Presenter: Zhainagul Kydyralieva
Session : 5C Kalkınma
The Effects of External Debts on Economic Growth of Kyrgyzstan
Kırgızistan’da Dış Borçların Ekonomik Büyüme Üzerindeki Etkisi
- Mr. Tolkun Zhumakunova (Kyrgyz-Turkish Manas University, Kyrgyzstan)
- Zhainagul Kydyralieva (Kyrgyz-Turkish Manas University, Kyrgyzstan)
Abstract
In developing countries, insufficient internal sources cause the increase of need on external sources. These countries in order to maintain their economic growth apply for external debt to cover the gap of foreign currency and savings. After the collapse of Soviet Union, Kyrgyzstan began to use external funds. It is very important to use these sources in accurate areas and efficiently. Most empirical studies indicate a negative correlation between foreign debt and economic growth, especially in those countries whose foreign debts are relatively high. This work examines the correlation between foreign debt and economic growth in Kyrgyz economy. Toward this objective, it uses the economic indicators of Kyrgyzstan between 1993 and 2015. The stationarity of time series data used in this study was tested by the ADF test. Than a least-squares regression analysis is performed. According to the findings of study, foreign debt in Kyrgyzstan have a negative impact on economic growth. According to results foreign debt should be reduced in order to increase the level of economic growth in Kyrgyzstan.
JEL codes:
Zhumakunova, Tolkun, Kydyralieva, Zhainagul (2017). "The Effects of External Debts on Economic Growth of Kyrgyzstan" in Proceedings of International Conference of Eurasian Economies 2017, pp.366-372, Bishkek, KYRGYZSTAN.
DOI: https://doi.org/10.36880/C09.02019
