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The ‘Need’ For Foreign Resources, Absorptive Capacity and Debt Servicing Capacity

In: Capital Movements and Economic Development

Author

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  • Ravi I. Gulhati

    (International Bank for Reconstruction and Development)

Abstract

The three phrases in the title of this article are used frequently by practitioners of foreign aid. Although this terminology has wide currency, the professional economist is aware of ambiguities in each concept. The Round Table Conference on Capital Movements and Economic Development is an appropriate forum at which to air these difficulties and to attempt more precise definitions. The object of this paper is to take up these three concepts in turn and to see how far we can go in this direction. Furthermore, we will try to examine the operational content of these concepts, i.e. the extent to which ‘need’ for foreign resources, absorptive capacity and debt servicing capacity can be measured. Finally, we will attempt to elucidate significant relationships among these concepts and draw some conclusions regarding the rationale and strategy of foreign aid decisions.

Suggested Citation

  • Ravi I. Gulhati, 1967. "The ‘Need’ For Foreign Resources, Absorptive Capacity and Debt Servicing Capacity," International Economic Association Series, in: John H. Adler (ed.), Capital Movements and Economic Development, chapter 0, pages 240-267, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-15238-4_8
    DOI: 10.1007/978-1-349-15238-4_8
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    Cited by:

    1. repec:ags:ucdavw:225630 is not listed on IDEAS
    2. Feder, Gershon & Just, Richard E., 1977. "A study of debt servicing capacity applying logit analysis," Journal of Development Economics, Elsevier, vol. 4(1), pages 25-38, February.
    3. Lynn Richards & Lynn Richards, 1977. "The Context of Foreign Aid: Modern Imperialism," Review of Radical Political Economics, Union for Radical Political Economics, vol. 9(4), pages 43-75, December.
    4. Feder, Gershon & Just, Richard E., 1977. "An analysis of credit terms in the eurodollar market," European Economic Review, Elsevier, vol. 9(2), pages 221-243.
    5. repec:ags:ucdavw:225633 is not listed on IDEAS

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