External debt, state ownership and technical efficiency: a stochastic frontier analysis of emerging economies
Arguing that the litmus test of external debt sustainability should be based on total factor productivity growth instead of mere GDP growth, this study examines the effect of external debt on total factor productivity through technical efficiency change using the Stochastic Frontier Analysis method....
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Springer Nature
2024
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| Online Access: | http://psasir.upm.edu.my/id/eprint/115657/ http://psasir.upm.edu.my/id/eprint/115657/1/115657.pdf |
| _version_ | 1848866836486029312 |
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| author | Yap, Woon Kan Kamarudin, Fakarudin Gryzelius, Jenny |
| author_facet | Yap, Woon Kan Kamarudin, Fakarudin Gryzelius, Jenny |
| author_sort | Yap, Woon Kan |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Arguing that the litmus test of external debt sustainability should be based on total factor productivity growth instead of mere GDP growth, this study examines the effect of external debt on total factor productivity through technical efficiency change using the Stochastic Frontier Analysis method. To deepen the analysis, the dynamics of technical efficiency, public sector external debt and state ownership are also investigated in this study. The results show that external debt of the private sector increases total factor productivity by improving technical efficiency, whereas the contrary is true with regard to external debt of the public sector. Hence, between the public and private sectors, the latter shows greater efficiency in allocating and using external debt. Nonetheless, the negative impact of public sector external debt on technical efficiency can be mitigated by transferring state-owned assets to the private sector through privatization. |
| first_indexed | 2025-11-15T14:26:56Z |
| format | Article |
| id | upm-115657 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T14:26:56Z |
| publishDate | 2024 |
| publisher | Springer Nature |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1156572025-03-13T01:19:39Z http://psasir.upm.edu.my/id/eprint/115657/ External debt, state ownership and technical efficiency: a stochastic frontier analysis of emerging economies Yap, Woon Kan Kamarudin, Fakarudin Gryzelius, Jenny Arguing that the litmus test of external debt sustainability should be based on total factor productivity growth instead of mere GDP growth, this study examines the effect of external debt on total factor productivity through technical efficiency change using the Stochastic Frontier Analysis method. To deepen the analysis, the dynamics of technical efficiency, public sector external debt and state ownership are also investigated in this study. The results show that external debt of the private sector increases total factor productivity by improving technical efficiency, whereas the contrary is true with regard to external debt of the public sector. Hence, between the public and private sectors, the latter shows greater efficiency in allocating and using external debt. Nonetheless, the negative impact of public sector external debt on technical efficiency can be mitigated by transferring state-owned assets to the private sector through privatization. Springer Nature 2024-04-13 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/115657/1/115657.pdf Yap, Woon Kan and Kamarudin, Fakarudin and Gryzelius, Jenny (2024) External debt, state ownership and technical efficiency: a stochastic frontier analysis of emerging economies. Portuguese Economic Journal, 24 (1). art. no. 100091. pp. 123-150. ISSN 1617-982X; eISSN: 1617-9838 https://link.springer.com/article/10.1007/s10258-024-00255-8?error=cookies_not_supported&code=91cb030f-3842-4249-87a5-d6f121c7eb3d 10.1007/s10258-024-00255-8 |
| spellingShingle | Yap, Woon Kan Kamarudin, Fakarudin Gryzelius, Jenny External debt, state ownership and technical efficiency: a stochastic frontier analysis of emerging economies |
| title | External debt, state ownership and technical efficiency: a stochastic frontier analysis of emerging economies |
| title_full | External debt, state ownership and technical efficiency: a stochastic frontier analysis of emerging economies |
| title_fullStr | External debt, state ownership and technical efficiency: a stochastic frontier analysis of emerging economies |
| title_full_unstemmed | External debt, state ownership and technical efficiency: a stochastic frontier analysis of emerging economies |
| title_short | External debt, state ownership and technical efficiency: a stochastic frontier analysis of emerging economies |
| title_sort | external debt, state ownership and technical efficiency: a stochastic frontier analysis of emerging economies |
| url | http://psasir.upm.edu.my/id/eprint/115657/ http://psasir.upm.edu.my/id/eprint/115657/ http://psasir.upm.edu.my/id/eprint/115657/ http://psasir.upm.edu.my/id/eprint/115657/1/115657.pdf |