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Australia's External Debt: Is It A Symptom Or A Cause Of Economic Slowdown?, Khorshed Chowdhury
Australia's External Debt: Is It A Symptom Or A Cause Of Economic Slowdown?, Khorshed Chowdhury
Faculty of Business - Papers (Archive)
Amidst the debate surrounding the 'debt problem' in Australia, the key analytical issue of whether external debt is a symptom or a cause of economic slowdown has been ignored. Sachs (1990) and Kenen (1990) argued that the external 'debt overhang' is a primary cause of economic slowdown and acts as an obstacle to economic growth. The second view is by Bulow and Rogoff (1990) who argue that the external debts are a symptom of poor economic management and performance rather than a primary cause of stifled economic growth. The statistical tests of causal relationships between the GDP growth rate and …