A Comprehensive Analysis of External Debt, Investment, and Economic Growth Applied to OIC Member Countries

Abstract

This work examines foreign debt, investment, and economic growth in OIC countries. Using panel data analysis, it considers how external debts affect these countries in terms of investment and economic growth. The results suggest external debt has both positive and negative roles on investment and economic growth depending on the country's economy. The importance of understanding complex relations regarding foreign debt and performance in OIC countries is highlighted. In fact, the study encourages policymakers' interventions, balancing between economic policies and those that would suit the special situations in these countries.