Evidencia empirica sobre deuda externa, inversion, y crecimiento en Mexico, 1980-2003

Empirical evidence on foreign debt, investment, and growth in Mexico, 1980-2003

Pedro Flores Prieto, Thomas Fullerton () and Cesar Andrade Olivas

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Foreign debt; growth; applied econometrics; Mexico (search for similar items in EconPapers)
JEL-codes: O11 F34 O54 (search for similar items in EconPapers)
Date: 2007-04, Revised 2007-04
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Published in Analisis Economico 50.22(2007): pp. 149-171

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Persistent link: http://EconPapers.repec.org/RePEc:pra:mprapa:9497

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