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External debt sustainability: empirical evidence in Brazil

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  • Frederico Gonzaga Jayme Junior

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Abstract

The purpose of this paper is to investigate the sustainability of the external debt in Brazil, or, in other words, to analyze if Brazilian economy in consideration of its external debt repayments keeps solvent. Tests show that, for different periods and using different models and variables, external debt and current account deficits are not sustainable in the long run, confirming other studies that tested sustainability of the current account and external debt in Brazil.

Suggested Citation

  • Frederico Gonzaga Jayme Junior, 2001. "External debt sustainability: empirical evidence in Brazil," Textos para Discussão Cedeplar-UFMG td154, Cedeplar, Universidade Federal de Minas Gerais.
  • Handle: RePEc:cdp:texdis:td154
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    File URL: http://www.cedeplar.ufmg.br/pesquisas/td/TD%20154.pdf
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    Keywords

    debt sustainability; Brazil; external debt;

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