Title Does lower debt buy higher growth? : the impact of debt relief initiatives on growth / prepared by Sandra R. Marcelino and Ivetta Hakobyan

Published [Washington, D.C.] : International Monetary Fund, ©2014

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Description 1 online resource (41 pages) : color illustrations Series IMF working paper, 1018-5941 ; WP/14/230 IMF working paper ; WP/14/230. Contents Cover; Abstract; Contents; I. Introduction; II. Literature Review; III. The Impact of Debt Relief; IV. Empirical Analysis; V. Conclusions; References; Appendix Figures and Tables; Appendix Figure 1. Post-Completion Point HIPCs: Duration of Interim Period; Appendix Table 1. List of Sample Countries; Appendix Table 2. List of Variables and Description; Appendix Table 3. Summary statistics, 1996-2011; Appendix Table 4. Correlation Matrix; Appendix Table 5. Growth Regressions; Appendix Table 6. Investment Regressions; Annex; Selected Post-Completion Point HIPCs: Country Profiles Summary In 1996, the IMF and the World Bank introduced the Heavily Indebted Poor Countries Initiative---a comprehensive debt relief program aimed at reducing the external debt burden of eligible countries to sustainable levels, provided they carry out strong programs of macroeconomic adjustment and structural reforms designed to promote growth and reduce poverty. Now that the HIPC Initiative is nearly completed, this paper investigates whether the initiative managed to spur growth, either directly or indirectly through investment. In contrast to earlier studies, we conclude that there is some evidence of positive effects of the HIPC Initiative on growth. Such evidence suggests that the HIPC Initiative and MDRI have helped HIPC-eligible countries to reach higher growth, but it remains unclear whether this is through higher investment or another channel. Also, the analysis illustrates that it is hard to disentangle pure debt-relief effects from other concurrent factors.--Abstract Notes "December 2014." "Finance Department." Bibliography Includes bibliographical references (pages 20-22) Notes Online resource; title from pdf title page (IMF.org Web site, viewed December 29, 2014) Subject Debts, External -- Developing countries Debt relief -- Developing countries Economic development -- Developing countries Debt relief Debts, External Economic development Economic policy SUBJECT Developing countries -- Economic policy Subject Developing countries Form Electronic book Author Hakobyan, Ivetta, author. International Monetary Fund. Finance Department, issuing body. ISBN 1498369677 9781498369671 9781498302265 1498302262

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