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Debt Relief Incentives in Highly Indebted Poor Countries (HIPC): An Empirical Assessment

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  • Dobdinga Fonchamnyo

Abstract

For more than two decades, the majority of countries in the African continent have experienced repeated episodes of rising external debt and debt service, which has led to numerous efforts of external debt relief. This paper provides new evidence on the effects of the Heavily Indebted Poor Countries (HIPC) Initiative on different economic and social indicators in 60 low income countries (LICs). Results show that LICs that were included in the HIPC Initiative marginally performed better than non-HIPC countries. There is evidence that countries that have reached the completion point of the HIPC Initiative by 2005 have experienced an average improvement in investment, health care, gross secondary education enrollment, and GDP per capita growth. Copyright International Atlantic Economic Society 2009

Suggested Citation

  • Dobdinga Fonchamnyo, 2009. "Debt Relief Incentives in Highly Indebted Poor Countries (HIPC): An Empirical Assessment," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 15(3), pages 322-335, August.
    • Handle: RePEc:kap:iaecre:v:15:y:2009:i:3:p:322-335:10.1007/s11294-009-9211-1
    DOI: 10.1007/s11294-009-9211-1
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    Cited by:

    1. Joshua C. Hall, Serkan Karadas and Minh Tam T. Schlosky, 2018. "Is There Moral Hazard in the Heavily Indebted Poor Countries (HIPC) Initiative Debt Relief Process?," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 43(3), pages 1-24, September.
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    3. Siddique, Abu & Selvanathan, E.A. & Selvanathan, Saroja, 2016. "The impact of external debt on growth: Evidence from highly indebted poor countries," Journal of Policy Modeling, Elsevier, vol. 38(5), pages 874-894.

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    More about this item

    Keywords

    HIPC initiative; Debt relief incentive; Economic performance; F34; H63; O11;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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