IDEAS home Printed from https://ideas.repec.org/a/bla/kyklos/v33y1980i3p475-498.html
   My bibliography  Save this article

Balance Of Payments Disturbances And The Debt Of The Non‐Oil Less Developed Countries: Retrospect And Prospect

Author

Listed:
  • Millard Long

Abstract

The paper identifies the disturbances in the balance of payments of the non‐oil less developed countries responsible for the rapid growth in their external debt between 1972 and 1977. It also examines prospects for the future. It finds that the sharp growth in the current account deficits in the years 1974 and 1975 was due primarily to adverse movements in the terms of trade. But trade terms were reversed in 1976 and 1977 and the deficit was reduced. Still overall inflation, slow export growth, and large interest payments kept the deficit substantially above the 1972 and earlier levels. In part II the paper examines how the debt to GNP ratio of the LDC's could be affected by four factors: export growth, changes in real interest rates, terms of trade, and credit rationing. A model is developed which shows that certain combinations of the four factors could lead to rapid accumulation of debt relative to GNP.

Suggested Citation

  • Millard Long, 1980. "Balance Of Payments Disturbances And The Debt Of The Non‐Oil Less Developed Countries: Retrospect And Prospect," Kyklos, Wiley Blackwell, vol. 33(3), pages 475-498, August.
    • Handle: RePEc:bla:kyklos:v:33:y:1980:i:3:p:475-498
    DOI: 10.1111/j.1467-6435.1980.tb02644.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-6435.1980.tb02644.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-6435.1980.tb02644.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Millard F. Long, 1981. "External Debt and the Trade Imperative in Latin America," NBER Chapters, in: Export Diversification and the New Protectionism: The Experiences of Latin America, pages 280-302, National Bureau of Economic Research, Inc.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:kyklos:v:33:y:1980:i:3:p:475-498. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0023-5962 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.