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Debt Relief and Growth: A Study of Zambia and Tanzania

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  • Arne Bigsten
  • Jörgen Levin
  • Håkan Persson

Abstract

This paper discusses some issues on how to evaluate the impact of HIPC debt relief in the cases of Tanzania and Zambia using two computable general equilibrium models. Within our relatively simple model framework, we found that the macroeconomic impact of debt relief is modest. One reason for this relatively modest impact is that the annual injection of additional resources relative to current actual debt service is small in both cases, which implies that the impact of debt relief per se would be expected to be modest.

Suggested Citation

  • Arne Bigsten & Jörgen Levin & Håkan Persson, 2001. "Debt Relief and Growth: A Study of Zambia and Tanzania," WIDER Working Paper Series DP2001-104, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2001-104
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    References listed on IDEAS

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    1. Reinikka, Ritva & Svensson, Jakob, 1999. "How inadequate provision of public infrastructure and services affects private investment," Policy Research Working Paper Series 2262, The World Bank.
    2. Devarajan, Shantayanan & Hossain, Shaikh I., 1998. "The combined incidence of taxes and public expenditures in the Philippines," World Development, Elsevier, vol. 26(6), pages 963-977, June.
    3. Arne Bigsten, 2001. "Policy-Making in Resource-Rich Countries," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 2(3), pages 139-153, July.
    4. Bigsten , Arne & Kayizzi-Mugerwa, Steve, 2000. "The Political Economy of Policy Failure in Zambia," Working Papers in Economics 23, University of Gothenburg, Department of Economics.
    5. Jung, Hong-Sang & Thorbecke, Erik, 2003. "The impact of public education expenditure on human capital, growth, and poverty in Tanzania and Zambia: a general equilibrium approach," Journal of Policy Modeling, Elsevier, vol. 25(8), pages 701-725, November.
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    Cited by:

    1. Thurlow, James & Wobst, Peter, 2004. "The road to pro-poor growth in Zambia: past lessons and future challenges," DSGD discussion papers 16, International Food Policy Research Institute (IFPRI).
    2. Grace G Kgakge-Tabengwa, 2014. "Impact of Shocks to Public Debt and Government Expenditure on Human Capital and Growth in Developing Countries," Journal of Economics and Behavioral Studies, AMH International, vol. 6(1), pages 44-67.
    3. repec:dau:papers:123456789/4089 is not listed on IDEAS
    4. Tony Addison & George Mavrotas & Mark McGillivray, 2005. "Aid to Africa: an unfinished agenda," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(8), pages 989-1001.
    5. Lofgren, Hans & Thurlow, James & Robinson, Sherman, 2004. "Prospects for growth and poverty reduction in Zambia, 2001-2015," DSGD discussion papers 11, International Food Policy Research Institute (IFPRI).
    6. World Bank, 2004. "Zambia - Country Economic Memorandum : Policies for Growth and Diversification, Volume 1. Main Report," World Bank Publications - Reports 15666, The World Bank Group.
    7. Ralf Hepp, 2005. "Health Expenditures Under the HIPC Debt Initiative," International Finance 0510005, University Library of Munich, Germany.
    8. Ralf Hepp, 2005. "Can Debt Relief Buy Growth?," International Finance 0510003, University Library of Munich, Germany.

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