International Debt Statistics Analysis Using a Multiple Linear Regression Model

This study uses multiple linear regression to analyze the factors that influence a nation's foreign debt. The study looks for important indicators of a nation's external debt using a dataset of economic data, including GDP growth, inflation rate, trade balance, interest rates, and foreign direct investment.Based on data from a representative sample of countries over the past 20 years, the research offers insights into both industrialized and emerging economies. Results show that while GDP growth has a moderating effect, higher inflation and trade deficits are consistently associated with larger external debt.The model highlights the intricacies of international financing and finds a statistically significant relationship between the selected factors and foreign debt. In a globalized financial environment,these observations provide crucial information for policymakers seeking to influence economic policy and control manageable debt levels.