Abstract
This study conducts the external debt sustainability analysis for the eight SAARC economies using the data from 2000 to 2013. Three types of techniques- univariate unit root tests, panel unit root tests and the cointegration tests are applied. According to the first and second type of tests results, the external debt of SAARC economies is unsustainable individually but sustainable as a whole. The results of third type of tests reveal that the external debt of the SAARC economies is unsustainable individually and wholly with some exceptions. The study deduces that the external debt of SAARC countries is unsustainable so they should exploit their domestic resources instead of going for the foreign resources and encourage saving and investment environment in their countries.
Muhammad Ramzan Sheikh1, Muhammad Nauman Abbasi2, , Saliha Iqbal3 ,, Salman Masood. (2014) External Debt Sustainability Analysis: A Case of SAARC Countries, International Journal of Management Research and Emerging Sciences, Volume 4, Issue 1.
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