European Parliament Library

External Debt, Public Investment, and Growth in Low-Income Countries, Toan Nguyen, Benedict Clements, Rina Bhattacharya

Abstract
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
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. SUMMARY OF THE LITERATURE ON EXTERNAL DEBT AND GROWTH""; ""III. EMPIRICAL ANALYSIS""; ""IV. CONCLUSIONS""; ""APPENDIX I""; ""References""
Language
eng
Literary Form
non fiction
Edition
1st ed.
Note
"December 2003"--Caption
Physical Description
1 online resource (25 pages)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781462395057

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