External Debt, Public Investment, and Growth in Low-Income Countries

Author/creator Nguyen, Toan Quoc Author
Other author Clements, Benedict J. Author
Other author Bhattacharya, Rina Author
Format Electronic
Publication InfoWashington : International Monetary Fund
Description26 p.
Supplemental ContentFull text available from Ebook Central - Academic Complete

Summary Annotation This paper examines the channels through which external debt affects growth in low-income countries. Our results suggest that the substantial reduction in the stock of external debt projected for highly indebted poor countries (HIPCs) would directly increase per capita income growth by about 1 percentage point per annum. Reductions in external debt service could also provide an indirect boost to growth through their effects on public investment. If half of all debt-service relief were channeled for such purposes without increasing the budget deficit, then growth could accelerate in some HIPCs by an additional 0.5 percentage point per annum.
Access restrictionAvailable only to authorized users.
Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
ISBN9781451920505
ISBN1451920504 (E-Book) Active Record
Stock number00013468

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