External Debt and Worsening Business Cycles in Less Developed Countries

External Debt and Worsening Business Cycles in Less Developed Countries

Less developed countries (LDCs) have seen considerable business cycles in recent decades. At the same time they have significantly increased their external-debt-to-GDP ratios. It seems natural to suspect that increased indebtedness and the amplified cycles are linked. The paper presents a simple mac...

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Main Author: LEUNG, Hing-Man
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2003
Subjects:
Developing countries
Debt
Business cycles
Finance
Online Access:https://ink.library.smu.edu.sg/soe_research/150
https://ink.library.smu.edu.sg/context/soe_research/article/1149/viewcontent/ExternalDebt_LDCs_2003.pdf
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spelling sg-smu-ink.soe_research-11492018-05-07T01:59:45Z External Debt and Worsening Business Cycles in Less Developed Countries LEUNG, Hing-Man Less developed countries (LDCs) have seen considerable business cycles in recent decades. At the same time they have significantly increased their external-debt-to-GDP ratios. It seems natural to suspect that increased indebtedness and the amplified cycles are linked. The paper presents a simple macroeconomic model to formalize this connection. External debt is the novelty of this model. The paper's main contribution is to calibrate the dynamic parameter using the World Development Indicator. It is found that the LDC dynamic behavior is generally non-oscillatory. Alarmingly though, the dynamic convergent system in the 1970s has been replaced by one of divergence. 2003-01-01T08:00:00Z text application/pdf https://ink.library.smu.edu.sg/soe_research/150 info:doi/10.1108/01443580310465367 https://ink.library.smu.edu.sg/context/soe_research/article/1149/viewcontent/ExternalDebt_LDCs_2003.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Economics eng Institutional Knowledge at Singapore Management University Developing countries Debt Business cycles Finance
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Developing countries
Debt
Business cycles
Finance
spellingShingle Developing countries
Debt
Business cycles
Finance
LEUNG, Hing-Man
External Debt and Worsening Business Cycles in Less Developed Countries
description Less developed countries (LDCs) have seen considerable business cycles in recent decades. At the same time they have significantly increased their external-debt-to-GDP ratios. It seems natural to suspect that increased indebtedness and the amplified cycles are linked. The paper presents a simple macroeconomic model to formalize this connection. External debt is the novelty of this model. The paper's main contribution is to calibrate the dynamic parameter using the World Development Indicator. It is found that the LDC dynamic behavior is generally non-oscillatory. Alarmingly though, the dynamic convergent system in the 1970s has been replaced by one of divergence.
format text
author LEUNG, Hing-Man
author_facet LEUNG, Hing-Man
author_sort LEUNG, Hing-Man
title External Debt and Worsening Business Cycles in Less Developed Countries
title_short External Debt and Worsening Business Cycles in Less Developed Countries
title_full External Debt and Worsening Business Cycles in Less Developed Countries
title_fullStr External Debt and Worsening Business Cycles in Less Developed Countries
title_full_unstemmed External Debt and Worsening Business Cycles in Less Developed Countries
title_sort external debt and worsening business cycles in less developed countries
publisher Institutional Knowledge at Singapore Management University
publishDate 2003
url https://ink.library.smu.edu.sg/soe_research/150
https://ink.library.smu.edu.sg/context/soe_research/article/1149/viewcontent/ExternalDebt_LDCs_2003.pdf
_version_ 1770569040045015040

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