The impact of external debt on growth: Evidence from highly indebted poor countries

Abu Siddique, E.A. Selvanathan, S. Selvanathan

Research output: Contribution to journalArticlepeer-review

47 Citations (Scopus)

Abstract

© 2016 The Society for Policy ModelingDuring the 1970's and 1980's, the external debt of poor countries rose to a level constituting a ‘debt crisis’. The main source of external debt was the surplus revenue generated by significant increases in the price of oil during the 1970s. Unfortunately, many of the countries failed to use the external debt wisely and prudently. When the revenue from oil sales started to decline due to low oil prices during the 1980s, heavily indebted poor countries (HIPCs) experienced difficulty servicing the debt. Using HIPCs data, this paper analyses the extent to which the external debt burden impacts on a country's GDP.
Original languageEnglish
Pages (from-to)874-894
Number of pages21
JournalJournal of Policy Modeling
Volume38
Issue number5
DOIs
Publication statusPublished - 1 Sept 2016

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