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Evidencia empirica sobre deuda externa, inversion, y crecimiento en Mexico, 1980-2003
[Empirical evidence on foreign debt, investment, and growth in Mexico, 1980-2003]

Author

Listed:
  • Flores Prieto, Pedro
  • Fullerton, Thomas M., Jr.
  • Andrade Olivas, Cesar

Abstract

Under some conditions, it is possible that foreign debt can cause fixed investment in a country to decline. Under those circumstances, economic growth will turn negative. This theoretical possibility is known as the debt overhang hypothesis. This study investigates the debt overhang hypothesis for Mexico between 1980 and 2003. Parameter estimation results offer partial empirical evidence in favor of this hypothesis. Simulation results exhibit a high degree of correlation with actual sample data.

Suggested Citation

  • Flores Prieto, Pedro & Fullerton, Thomas M., Jr. & Andrade Olivas, Cesar, 2007. "Evidencia empirica sobre deuda externa, inversion, y crecimiento en Mexico, 1980-2003
    [Empirical evidence on foreign debt, investment, and growth in Mexico, 1980-2003]
    ," MPRA Paper 9497, University Library of Munich, Germany, revised Apr 2007.
  • Handle: RePEc:pra:mprapa:9497
    as

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    File URL: https://mpra.ub.uni-muenchen.de/9497/1/MPRA_paper_9497.pdf
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    References listed on IDEAS

    as
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    3. Jeffrey Sachs & Harry Huizinga, 1987. "U.S. Commercial Banks and the Developing-Country Debt Crisis," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(2), pages 555-606.
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    14. Claessens, Stijn, 1990. "The debt laffer curve: Some estimates," World Development, Elsevier, vol. 18(12), pages 1671-1677, December.
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    Citations

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    Cited by:

    1. Gharyeni, Abdellatif, 2015. "Dette Extérieure, Croissance Économique et Crises dans Les Pays En Développement : Un Bref Aperçu Théorique, Historique et Statistique
      [External Debt, Economic Growth and Crisis in Developing Count
      ," MPRA Paper 69244, University Library of Munich, Germany, revised 04 Feb 2106.
    2. Gharyeni, Abdellatif & Jouili, Mustapha, 2015. "Dette extérieure et croissance économique dans les pays à revenu intermédiaire : Essai empirique
      [External Debt and Economic Growth in the Middle-Income Countries :Empirical Test]
      ," MPRA Paper 69122, University Library of Munich, Germany, revised 31 Jan 2016.

    More about this item

    Keywords

    Foreign debt; growth; applied econometrics; Mexico;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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