External Debt and Economic Reform : Does a Pain Reliever Delay the Necessary Treatment? /

Recent literature argues that conflict in shifting adjustment costs between different socioeconomic groups delays necessary reforms and finds that such reforms often follow economic crises. This paper expands these models by including external borrowing by the private sector and shows that this may...

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Hlavní autor: Vamvakidis, Athanasios
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 2007.
Edice:IMF Working Papers; Working Paper ; No. 2007/050
On-line přístup:Full text available on IMF
Popis
Shrnutí:Recent literature argues that conflict in shifting adjustment costs between different socioeconomic groups delays necessary reforms and finds that such reforms often follow economic crises. This paper expands these models by including external borrowing by the private sector and shows that this may lead to a further delay in economic reform. Empirical evidence based on a large panel of developing and emerging economies supports this argument and shows that the result is slower economic growth. External financing sometimes acts like a "pain reliever," postponing the much needed "treatment" of a "sick" economy by reform.
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Fyzický popis:1 online resource (27 pages)
Médium:Mode of access: Internet
ISSN:1018-5941
Přístup:Electronic access restricted to authorized BRAC University faculty, staff and students