INTERNATIONAL JOURNAL OF ADVANCE RESEARCH
IN MULTIDISCIPLINARY

The factors influencing Liberia's external debt from 1991 to 2022 were examined in this paper. During the estimate procedure, the correlation matrix, cointegration test, unit root test, and error correction model were employed. The results show that, both in the short and long run, economic growth and foreign direct investment reduce external debt, but exchange rates, trade balances, and government spending raise it. The consistency and reliability of our findings are confirmed by diagnostic test results, which policymakers should take into account when creating and enforcing policies. From the findings, pertinent policy recommendations are put out for consideration to reduce Liberia's external debt.