Economic growth, foreign loans and debt servicing capacity of developing countries
- 1 April 1980
- journal article
- research article
- Published by Taylor & Francis in The Journal of Development Studies
- Vol. 16 (3) , 352-368
- https://doi.org/10.1080/00220388008421763
Abstract
The paper links a simple aggregate model of growth‐cum‐external debt with an empirical formula for debt‐servicing capacity. Through simulations of growth and debt patterns, using data related to two groups of LDCs, the underlying conditions and the pattern of debt service problems which emerge are studied. Simulation of policies designed to alleviate debt‐service problems allows an assessment of the efficiency and suitability of different policies. The time dimension of debt problems and its relevance to policy are considered as well. The study raises doubts regarding the applicability of accepted beliefs and rules of thumb related to external debt management.Keywords
This publication has 4 references indexed in Scilit:
- A study of debt servicing capacity applying logit analysisJournal of Development Economics, 1977
- A Perspective on the Debt of Developing CountriesBrookings Papers on Economic Activity, 1977
- Foreign Exchange Constraints in Economic Development and Efficient Aid AllocationThe Economic Journal, 1964
- The Servicing of Foreign Capital Inflows by Under-Developed CountriesPublished by Springer Nature ,1961