%0 Journal Article
%T External Debt and Growth
%A Catherine Pattillo
%A H¨¦l¨¨ne Poirson
%A Luca Antonio Ricci
%J Review of Economics and Institutions
%D 2011
%I University of Perugia
%R 10.5202/rei.v2i3.45
%X This paper assesses the non linear impact of external debt on growth using panel data for 93 developing countries. The estimates support a non-linear, hump-shaped relationship between debt and growth, especially when the debt burden is measured relative to GDP. For a country with average indebtedness, doubling the debt ratio reduces growth by a third to a half percentage point after controlling for endogeneity. Our findings also suggest that the average impact of debt becomes negative at about 160¨C170 percent of exports or 35¨C40 percent of GDP and the marginal impact of debt at about half of these values
%K Growth
%K external debt
%K debt relief
%K HIPC initiative
%U http://www.rei.unipg.it/rei/article/view/45