Scandinavian Working Papers in Economics
Working Papers,
Lund University, Department of Economics
No 2005:34: Debt and Economic Growth in Developing and Industrial Countries
Alfredo Schclarek
Additional contact information
Alfredo Schclarek: Department of Economics, Lund University, Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund, Sweden
Abstract: This paper empirically explores the relationship between debt and growth for a number of developing and industrial economies. For developing countries, we find that lower total external debt levels are associated with higher growth rates, and that this negative relationship is driven by the incidence of public external debt, and not by private external debt. Regarding the channels through which debt accumulation affects growth, we find that this is mainly driven by the capital accumulation growth. There is only limited evidence on the relationship between external debt and total factor productivity growth. In addition, for private savings rates there are mixed results. We do not find any support for an inverted-U shape relationship between external debt and growth. For industrial countries, we do not find any significant relationship between gross government debt and economic growth.
Keywords: External Debt; Public debt; Economic Growth; Capital Accumulation; Productivity Growth; Private Savings
39 pages, December 4, 2004
Full text files
WP05_34.pdf
Questions (including download problems) about the papers in this series should be directed to Iker Arregui Alegria ()
Report other problems with accessing this service to Sune Karlsson ().
RePEc:hhs:lunewp:2005_034This page generated on 2024-09-13 22:16:09.