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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/19848| Title: | The debt-growth nexus in poor countries: a reassessment |
| Keywords: | O11 C33 F34 H63 ddc:330 External Debt HIPC Debt Relief Economic Growth |
| Issue Date: | 16-Oct-2013 |
| Publisher: | |
| Description: | This paper investigates the relationship between external indebtedness and economic growth, with a particular attention to LICs, for which the theoretical arguments of debt overhang and liquidity constraint have to be reconsidered. The estimation of a growth model, with a panel of 121 developing countries, supports a negative and linear relationship between past values of the NPV of external public debt and current economic growth. This is due to the ?extended debt overhang?, according to which a large indebtedness leads to misallocation of capital and discourage long-term investment and structural reforms. This work underlines the critical role of economic policies and institutions, the necessity of focusing on LICs and fostering macroeconomic stability. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/19848 |
| Other Identifiers: | http://hdl.handle.net/10419/19848 ppn:517921529 RePEc:zbw:gdec06:4745 |
| Appears in Collections: | EconStor |
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