Document Type

Conference Paper

Publication Date

1989

First Page

1

Last Page

38

Keywords

External debt, Highly indebted countries, Debt financing

Abstract / Description

External finance or borrowing in the context of developing countries is primarily viewed as a source of increased resources for investment to generate growth relaxing the constraints of domestic savings and foreign exchange. As the marginal productivity of investment in capital-scarce countries is believed to be higher than the world real interest rate, it is surmised that developing countries should borrow from international capital markets and use these borrowings to increase investment and output growth rates.

Comments

Ishrat Husain is identified as Chief of the Debt and International Finance Division and Saumya Mitra as Economist in the Risk Management and Financial Policy Department, with a note that the findings, interpretations, and conclusions are the personal views of the authors and should not be attributed to the World Bank, its Board of Directors, its management, or any of its member countries.

IH0221

Staff Note

Publication date estimated (not printed in the document). A handwritten annotation on page 1 reads "2/1/89." Estimate: 1989.

Note

Publication date estimated (not printed in the document). A handwritten annotation on page 1 reads "2/1/89." Estimate: 1989.

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