The Relationship between Aid and Debt in Developing Countries
| Autor: | Miles Cahill, Paul N. Isely |
|---|---|
| Rok vydání: | 2000 |
| Předmět: |
050208 finance
media_common.quotation_subject 05 social sciences Debt-to-GDP ratio Developing country Monetary economics International economics External debt Debt 0502 economics and business Economics Internal debt 050207 economics Debt levels and flows General Economics Econometrics and Finance Developed country media_common |
| Zdroj: | The American Economist. 44:78-91 |
| ISSN: | 2328-1235 0569-4345 |
| DOI: | 10.1177/056943450004400209 |
| Popis: | This paper constructs a model in which debt and aid are complementary. Specifically, the model shows how aid can be extracted from industrialized country governments by LDCs to finance debts. Policy implications for understanding debt crises are outlined. Using recent World Bank data, the fundamental equations of the model are estimated. While it is found that the model overestimates the actual amount of aid and debt, the relationship between aid, GDP and absorption; and debt, aid, GDP and absorption is of the predicted direction. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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