Theoretical Aspects of Growth in Developing Countries: External Debt Dynamics and the Role of Human Capital

Debt–Growth Nexus: A Spatial Econometrics Approach for Developing Countries

“…Meanwhile, inspired by the interdependence among countries in the world through trade and capital flow, Otani and Villanueva (1989), Agenor (2000), Villanueva (2003), and Mariano and Villanueva (2006) extend the growth model for the open economy, incorporating a global capital market role. The framework is an extension of a neoclassical growth model with slight modification that incorporates endogenous technological change.…”

Revisiting the Role of External Debt in Economic Growth of Developing Countries

“…As an extension of the Harrod-Domar growth model, the dual-gap theory has highlighted the motivation for the intro-duction of external debt in a growth model. Furthermore, in the era of high mobility of resources, the interdependence among countries has inspired Otani and Villaneuva (1989), Agenor (2000), Villaneuva (2003), and Mariano and Villaneuva (2006) to develop a growth model for the open economy that incorporates a global capital market role. Otani and Villanueva (1989), who initiated the study of this area, have developed a simple aggregate growth model that is capable of assessing the impact of macroeconomic policies on the long-term performance of a developing country where the model analyzes the accumulation of capital and the dynamic of external debt.…”

Does External Debt Contribute to Malaysia Economic Growth?

“…Relatively speaking, small changes in resources devoted to physical and human capital may lead to large changes in output per worker. In the era of globalization, the interdependence among countries in the world through trade and capital flow has inspired Otani and Villanueva (1989), Agenor (2000), Villanueva (2003), and Villanueva and Mariano (2007) to develop a growth model for the open economy that incorporates a global capital market role. Krugman (1988) defines debt-overhang as a situation in which the expected repayment of external debt falls short of the contractual value of the debt.…”

“…Inspired by the dual-gap theory, Otani and Villanueva (1989), Agenor (2000), Villanueva (2003), and Villanueva and Mariano (2007) developed a theory on the relationship between external debt and economic growth through several mechanisms such as fiscal policy adjustment. This has revealed the role of external debt in contributing to a country's economic growth.…”