 External debt in macroeconomics: a reviewKelvin Lee and Dodo J. Thampapillai International Journal of Economics and Business Research, 2016, vol. 12, issue 2, 103-118 Abstract: The paper provides a concise review of the treatment of external debt in macroeconomic analyses. In this regard, the paper considers: the development of indicators to quantify external debt alongside theoretical and empirical developments in which the indicators are utilised. Following the inherent limitations, the theoretical and empirical studies tend to employ more than one indicator. Both theoretical and empirical frameworks are distinguished in terms of whether they are static or dynamic in nature. The theoretical studies were also distinguished in terms of the utilisation of discrete and continuous frameworks. The empirical models were distinguished with reference to linearity and nonlinearity of the underlying premises. The review enables the reader to appreciate the relative advantages and disadvantages of the various frameworks and their contextual relevance. A key theme that runs through the studies reviewed is the impact of external debt on economic performance. The results, which are context specific, are mixed. Keywords: external debt; debt-to-GDP ratio; debt service; difference equations; differential equations; static modelling; dynamic modelling; macroeconomics; GDP; gross domestic product; economic performance. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijecbr:v:12:y:2016:i:2:p:103-118 Access Statistics for this article More articles in International Journal of Economics and Business Research from Inderscience Enterprises Ltd |
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