Linking development, trade, and debt strategies in highly indebted countries

Ishac Diwan ()

No 127, Policy Research Working Paper Series from The World Bank

Abstract: This paper analyzes the determinants of the choice by debtor countries of a jointly optimal trade and debt strategy after the occurrence of some negative shocks. Choosing between export promotion and import substitution is a matter of determining whether it is more profitable to increase the credit ceiling to borrow more, or to reduce the credit ceiling below inherited debt so there is less to repay. Following the introduction, section 2 of the paper sets up a simple two period trade model. Section 3 analyzes the joint optimal debt and investment strategies, while section 4 discusses extensions. Section 5 reviews the welfare concerns and section 5 provides a conclusion.

Keywords: Economic Theory&Research; Environmental Economics&Policies; Strategic Debt Management; Banks&Banking Reform; Financial Intermediation (search for similar items in EconPapers)
Date: 1988-11-30
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www-wds.worldbank.org/external/default/WDSC ... d/PDF/multi0page.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:127

Access Statistics for this paper

More papers in Policy Research Working Paper Series from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Roula I. Yazigi ().