Abstract or Introduction
This paper examines the impact of external public debt on the economic growth of developing countries. It delves into the dynamics of borrowing, debt service, and their effects on long-term economic development. The study analyzes established economic growth theories, including the neoclassical and endogenous growth models, to understand the intricate relationships between investment, technology, and labor that shape a nation's economic trajectory. It further explores the implications of debt through liquidity constraint and debt overhang theories, highlighting the potential crowding-out effect and diminished local resources for development due to debt service obligations.
- Quote paper
- Owen Adams (Author), 2022, The Effect of External Debt on Economic Growth in Developing Countries, Munich, GRIN Verlag, https://www.grin.com/document/1381449