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External Debt, Adjustment, and Growth

In: Macroeconomic Policies For Stable Growth

Author

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  • Delano S. Villanueva

    (Bangko sentral ng pilipinas, Philippines)

Abstract

The following sections are included:IntroductionThe Formal FrameworkBrief Survey of the LiteratureThe Extended ModelThe Reduced ModelRestrictions on External FinancingOptimal GrowthApplication to the PhilippinesImplications for Fiscal Policy and External Debt ManagementSummary and ConclusionsAppendix 3.A: Stability AnalysisAppendix 3.B: DataDefinitionsData SourcesSample PeriodSoftware UsedAppendix 3.C: Optimal Saving in a Learning by Doing Model IntroductionThe ModelThe Reduced ModelComparative DynamicsComments on the Optimal Saving RateConcluding RemarksReferences

Suggested Citation

  • Delano S. Villanueva, 2008. "External Debt, Adjustment, and Growth," World Scientific Book Chapters, in: Macroeconomic Policies For Stable Growth, chapter 3, pages 74-112, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789812818317_0003
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    8. Mr. Axel Schimmelpfennig & Nouriel Roubini & Paolo Manasse, 2003. "Predicting Sovereign Debt Crises," IMF Working Papers 2003/221, International Monetary Fund.
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    10. Roberto Mariano & Delano Villanueva, 2005. "Sustainable External Debt Levels : Estimates for Selected Asian Countries," Macroeconomics Working Papers 22468, East Asian Bureau of Economic Research.
    11. K. J. Arrow, 1971. "The Economic Implications of Learning by Doing," Palgrave Macmillan Books, in: F. H. Hahn (ed.), Readings in the Theory of Growth, chapter 11, pages 131-149, Palgrave Macmillan.
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    13. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    14. Aart Kraay & Vikram Nehru, 2006. "When Is External Debt Sustainable?," The World Bank Economic Review, World Bank, vol. 20(3), pages 341-365.
    15. Ichiro Otani & Delano Villanueva, 1989. "Theoretical Aspects of Growth in Developing Countries: External Debt Dynamics and the Role of Human Capital," IMF Staff Papers, Palgrave Macmillan, vol. 36(2), pages 307-342, June.
    16. Delano Villanueva, 1994. "Openness, Human Development, and Fiscal Policies: Effects on Economic Growth and Speed of Adjustment," IMF Staff Papers, Palgrave Macmillan, vol. 41(1), pages 1-29, March.
    17. repec:bla:ecorec:v:78:y:2002:i:243:p:375-80 is not listed on IDEAS
    18. Ms. Hélène Poirson & Mr. Luca A Ricci & Ms. Catherine A Pattillo, 2004. "What Are the Channels Through Which External Debt Affects Growth?," IMF Working Papers 2004/015, International Monetary Fund.
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    Cited by:

    1. Safia Shabbir, 2013. "Does External Debt Affect Economic Growth: Evidence from Developing Countries," SBP Working Paper Series 63, State Bank of Pakistan, Research Department.
    2. Siti Daud & Jan Podivinsky, 2011. "Debt–Growth Nexus: A Spatial Econometrics Approach for Developing Countries," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 18(1), pages 1-15, September.
    3. Shodiya Olayinka Abideen & Sanyaolu Wasiu Abiodun & Ojenike Joseph Olushola & Ogunmefun Gbadebo Tirimisiyu, 2019. "Shareholder Wealth Maximization and Investment Decisions of Nigerian Food and Beverage Companies," Acta Universitatis Sapientiae, Economics and Business, Sciendo, vol. 7(1), pages 47-63, December.
    4. Delano S Villanueva & Roberto S Mariano & Diwa C Guinigundo & Abbas Mirakhor, 2023. "Finance and Endogenous Growth," World Scientific Book Chapters, in: Economic Adjustment and Growth Theory and Practice, chapter 5, pages 96-118, World Scientific Publishing Co. Pte. Ltd..
    5. Siti Nurazira Mohd Daud & Jan M. Podivinsky, 2012. "Revisiting the role of external debt in economic growth of developing countries," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 13(5), pages 968-993, June.
    6. Omotor, Douglason G., 2019. "A Thrifty North and An Impecunious South: Nigeria's External Debt and the Tyranny of Political Economy," MPRA Paper 115292, University Library of Munich, Germany, revised 12 Oct 2019.
    7. Doğan, İbrahim & Bilgili, Faik, 2014. "The non-linear impact of high and growing government external debt on economic growth: A Markov Regime-switching approach," Economic Modelling, Elsevier, vol. 39(C), pages 213-220.
    8. Stylianou Tasos, 2012. "Does Government Debt Promote Economic Growth? An Empirical Analysis with Structural Breaks for the Economy of China," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 15(45), pages 229-248, December.

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    More about this item

    Keywords

    Macroeconomic Policies; Economic Growth; Macroeconomic Stabilization; External Debt Management; Financial Liberalization/Integration;
    All these keywords.

    JEL classification:

    • E - Macroeconomics and Monetary Economics
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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