The Resource What are the channels through which external debt affects growth?, prepared by Catherine Pattillo, Hélène Poirson, and Luca Ricci

What are the channels through which external debt affects growth?, prepared by Catherine Pattillo, Hélène Poirson, and Luca Ricci

Label
What are the channels through which external debt affects growth?
Title
What are the channels through which external debt affects growth?
Statement of responsibility
prepared by Catherine Pattillo, Hélène Poirson, and Luca Ricci
Creator
Contributor
Author
Issuing body
Subject
Language
eng
Summary
This paper investigates the channels through which debt affects growth, specifically whether debt affects growth through factor accumulation or total factor productivity growth. It also tests for the presence of nonlinearities in the effects of debt on the different sources of growth. We use a large panel dataset of 61 developing countries over the period 1969-98. Results indicate that the negative impact of high debt on growth operates both through a strong negative effect on physical capital accumulation and on total factor productivity growth. On average, for high-debt countries, doubling debt will reduce output growth by about 1 percentage point and reduce both per capita physical capital and total factor productivity growth by somewhat less than that. In terms of the contributions to growth, approximately one-third of the effect of debt on growth occurs via physical capital accumulation and two-thirds via total factor productivity growth. The results are generally robust to the use of alternative estimators to control (to different extents) for biases associated with unobserved country-specific effects and the endogeneity of several regressors, particularly the debt variables. In particular, the results are shown to be compatible with a simultaneous significant effect of growth on debt ratios, as suggested by Easterly (2001)
Member of
Action
digitized
Cataloging source
OCLCE
Illustrations
illustrations
Index
no index present
LC call number
HG3881.5.I58
LC item number
W67 no.04/15
Literary form
non fiction
Nature of contents
  • dictionaries
  • bibliography
Series statement
IMF working paper
Series volume
WP/04/15
Label
What are the channels through which external debt affects growth?, prepared by Catherine Pattillo, Hélène Poirson, and Luca Ricci
Publication
Antecedent source
file reproduced from original
Bibliography note
Includes bibliographical references (pages 31-33)
http://library.link/vocab/branchCode
  • net
Carrier category
online resource
Carrier category code
cr
Carrier MARC source
rdacarrier
Color
black and white
Content category
text
Content type code
txt
Content type MARC source
rdacontent
Control code
ocn647419877
Dimensions
unknown
Extent
1 online resource (33 pages)
File format
one file format
Form of item
online
Isbn
9781451891287
Media category
computer
Media MARC source
rdamedia
Media type code
c
Other physical details
illustrations
http://library.link/vocab/recordID
.b37167212
Reproduction note
Electronic reproduction.
Specific material designation
remote
System control number
  • (OCoLC)647419877
  • imf1281090077
System details
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.

Library Locations

    • Deakin University Library - Geelong Waurn Ponds CampusBorrow it
      75 Pigdons Road, Waurn Ponds, Victoria, 3216, AU
      -38.195656 144.304955
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