Borrowing for Growth: Big Pushes and Debt Sustainability in Low-Income Countries

Autor:	Rafael Portillo, Andrew Berg, Catherine Pattillo, Luis-Felipe Zanna, Edward F. Buffie
Rok vydání:	2019
Předmět:	Economics and Econometrics media_common.quotation_subject Developing country Monetary economics Development Big push model Policy analysis Investment (macroeconomics) Fiscal policy Accounting Debt Capital (economics) Sustainability Economics Finance media_common
Zdroj:	The World Bank Economic Review.
ISSN:	1564-698X 0258-6770
DOI:	10.1093/wber/lhy029
Popis:	The paper evaluates big push borrowing-and-investment programs in a new model-based framework of debt sustainability that is explicitly designed for policy analysis. The new framework is grounded in a fully-articulated, dynamic macroeconomic model. It allows for financing schemes that mix concessional, external commercial, and domestic debt, while taking into account the impact of public investment on growth and constraints on the speed and magnitude of fiscal adjustment. Supplementing concessional loans with nonconcessional borrowing in world capital markets is generally a high-risk, high-return strategy. It may greatly enhance the prospects for debt sustainability or lead to spectacular failure; much depends on the fine details governing debt contracts, the dynamics of growth, and the speed of fiscal adjustment.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::1b922eab00329d19427ce4e0c26e5e82 https://doi.org/10.1093/wber/lhy029 Zobrazit plný text záznamu