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Title: |
GNP Growth and Foreign Indebtedness in
Middle-Income Developing Countries |
| Author: |
Afxentiou,
Panayiotis C. |
| Author
Affiliation: |
U Calgary |
| Source: |
International Economic Journal, Autumn 1993, v. 7, no. 3, pp. 81-92 |
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Publication Date: |
Autumn 1993 |
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Abstract: |
In this paper Granger causality between
GNP growth and foreign indebtedness is examined in middle-income
developing countries over the period 1971-88. The evidence for a foreign
debt overhang is found to be stronger in two out of four cases when debt
service and interest service ratios are used as indicators of
indebtedness. The results would have been statistically stronger if
several countries had not rescheduled their debts. Based on these
results, which indirectly point to an overall mismanagement of foreign
resources by borrowing countries, a valid argument can be made for
country-specific writedowns of debt. |
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