Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/101802 
Year of Publication: 
1989
Series/Report no.: 
Diskussionsbeiträge - Serie II No. 76
Publisher: 
Universität Konstanz, Sonderforschungsbereich 178 - Internationalisierung der Wirtschaft, Konstanz
Abstract: 
A number of highly indebted developing countries have experienced severe foreign exchange shortages for a couple of years. They could not simply roll over old debt any more by taking up new loans. Since export revenues could not be raised sufficiently, quite a few countries resorted to a curtailment of imports. This paper examines whether the cutback on imports was distributed equally across different types of import goods for a number of countries classified as being problem debtors. It can be observed that the cutback fell primarily on capital goods. In addition, capital goods produced abroad accounted for a significantly smaller share in total Gross Fixed Capital Formation after the outbreak of the debt crisis than before. Consumption goods also carried the burden of adjustment, but only if they accounted for a substantial share of imports before the beginning of the crisis. The share of intermediate goods in real merchandise imports increased instead, reflecting the short-run vulnerability of domestic output to imported inputs.
Document Type: 
Working Paper

Files in This Item:
File
Size
674.14 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.