| Author(s) |
Wijeweera, Albert
Dollery, Brian Edward
Pathberiya, Palitha
|
| Publication Date |
2007
|
| Abstract |
In the immediate aftermath of the tsunami disaster, many of Sri Lanka's creditor nations granted debt write-offs and interest-free periods on loans to assist the reconstruction process. Two macroeconomic effects stem from excessive external debt; a debt overhang problem and a credit-rationing problem. Using econometric analysis and Sri Lankan data for the period 1952 to 2002, this paper investigates whether Sri Lanka faces a debt overhang problem. Long-run estimations rely on cointegration methodology whereas short-run analysis employs an error correction method. The results indicate that Sri Lanka does not have a debt overhang problem, probably because total external indebtedness is not too high.
|
| Citation |
Indian Journal of Economics & Business, 6(1), p. 93-102
|
| ISSN |
0972-5784
|
| Link | |
| Language |
en
|
| Publisher |
Serials Publications
|
| Title |
Economic Growth and External Debt Servicing: A Cointegration Analysis for the Case of Sri Lanka
|
| Type of document |
Journal Article
|
| Entity Type |
Publication
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