@techreport{Presbitero2007debt,
abstract = {This paper investigates the relationship between external indebtedness and economic growth, with a particular attention to LICs, for which the theoretical arguments of debt overhang and liquidity constraint have to be reconsidered. The estimation of a growth model, with a panel of 121 developing countries, supports a negative and linear relationship between past values of the NPV of external public debt and current economic growth. This could be due to the ?extended debt overhang?, according to which a large indebtedness leads to misallocation of capital and discourage long-term investment and structural reforms.},
address = {Kiel},
author = {Andrea F. Presbitero},
copyright = {http://creativecommons.org/licenses/by-nc/2.0/de/deed.en},
keywords = {O11; F34; C33; H63; 330; External Debt; HIPC; Debt Relief; Economic Growth},
language = {eng},
number = {2007-17},
publisher = {Kiel Institute for the World Economy (IfW)},
title = {The debt-growth nexus in poor countries: a reassessment},
type = {Economics Discussion Papers / Institut f\"{u}r Weltwirtschaft},
url = {http://hdl.handle.net/10419/17940},
year = {2007}
}
