The Impact of External Public Debt Growth on Egyptian Economic Growth

Abou EL Nour, Khaled A. I.

doi:10.33899/tanra.2024.1834231.1335

	The Impact of External Public Debt Growth on Egyptian Economic Growth
TANMIYAT AL-RAFIDAIN
Volume 43, Issue 142, June 2024, Pages 9-30 PDF (835.25 K)
Document Type: Research Paper
DOI: 10.33899/tanra.2024.1834231.1335
Author
Khaled A. I. Abou EL Nour^*
Department of Economics and Finance, College of Business and Economics (CBE), Qassim University, Qassim, Saudi Arabia.
Abstract
The research aims to study the impact of external public debt on Egyptian economic growth, using the Threshold Regression model, because it is most appropriate to know when decision-makers in central banks intervene to control the inflation rate when it exceeds the estimated regression threshold. The results showed the increase in the ratio of external debt to GDP by about 1% leads to an increase in the growth rate of GDP by about 1%. 0.38%, but that was before the threshold level was crossed. However, after crossing the threshold level, this increase leads to a decrease of (0.178). The research recommends those in charge of the Egyptian external public debt reduce the ratio of external debt to the current domestic product (2022), which is 37.1%, to become within safe limits so that economic growth can be promoted. With an emphasis on using external public debt in projects that have a positive and sustainable impact on economic growth in Egypt according to priorities in the light of feasibility studies and evaluation of current and future impacts, while achieving efficient spending.
Keywords
(External public debt; Economic Growth; Gross domestic product; Threshold Regression Model; Egypt)

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