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Foreign Indebtedness and Economic Growth: Is there a Limit to Foreign Financing?

In: Financing Problems of Developing Countries

Author

Listed:
  • Armin Gutowski

    (Hamburg Institute For International Economics)

Abstract

The capacity of a country to incur debts depends, as it does for a private enterprise, on whether or not it has at its disposal profitable investment opportunities which could at least meet the interest rate demanded on the international capital market. It is obvious that the country will only then receive a loan if potential creditors are convinced that such investment opportunities exist.

Suggested Citation

  • Armin Gutowski, 1985. "Foreign Indebtedness and Economic Growth: Is there a Limit to Foreign Financing?," International Economic Association Series, in: Armin Gutowski & A. A. Arnaúdo & Hans-Eckart Scharrer (ed.), Financing Problems of Developing Countries, chapter 13, pages 249-267, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-06749-7_13
    DOI: 10.1007/978-1-349-06749-7_13
    as

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