The effect of external debt on economic development in developing countries

Developing countries need enough savings to make investments that will provide their economic development. The process of external debt is applied for finans of development since internal savings in these countries are insufficient. In tis study, the effect of external debt on economic development has been studied for 29 developing countries in 1995-2017 terms. For the analysis, human development index and logarithmic total external debt stoks, human development index and external debt stocks (percentage of exports of good, services and primary income) have been examined by using the methods of Panel Unit Root test, Cointegration Test and Granger Causality Test. Keywords: Developing Countries, External Debt, Economic Development, Granger Causality Test.