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.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Debt situation in Developing Countries
- Problem statement
- Objectives
- Literature review
- Conclusions and recommendations
- Conclusion
- Recommendations
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to investigate the relationship between external debt and economic growth in developing countries. It seeks to determine the impact of external debt on economic growth and the effect of debt servicing on this growth. The paper will explore whether there is a significant correlation between external debt and economic growth in developing countries, and whether external debt servicing has a negative impact on economic growth.
- The impact of external debt on economic growth in developing countries
- The effect of debt servicing on economic growth in developing countries
- The role of external debt in financing development projects in developing countries
- The potential challenges and risks associated with high levels of external debt
- Policy implications and recommendations for managing external debt in developing countries
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction provides a background on the debt situation in developing countries, highlighting the potential benefits and risks of external borrowing. It outlines the problem statement, which focuses on the potential negative impact of high external debt levels on economic growth. The chapter also sets out the objectives of the paper.
The literature review section examines existing theories and research on the relationship between external debt and economic growth. It explores the neoclassical growth theory and its implications for developing countries, particularly in relation to investment and economic growth.
Schlüsselwörter (Keywords)
This paper focuses on the relationship between external debt, economic growth, developing countries, debt servicing, investment, neoclassical growth theory, policy implications, and debt management.
- 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
