Debt Overhang, Debt Reduction and Investment The Case of the Philippines. [electronic resource] : - Washington, D.C. : International Monetary Fund, 1990. - 1 online resource (30 p.) - IMF Working Papers; Working Paper ; No. 90/77 . - IMF Working Papers; Working Paper ; No. 90/77 .

While there is a substantial body of literature on the effects of "debt overhang" on investment in heavily-indebted countries, there is surprisingly little empirical work available on this subject. This paper tests the hypothesis that the stock of foreign debt acts as a disincentive to private investment in the specific case of the Philippines. The empirical estimates provide support for this hypothesis, particularly after 1982. The estimates indicate that a

1451956533 : 10.00 USD

1018-5941

10.5089/9781451956535.001 doi


Debt Overhang
Debt Reduction
Foreign Debt
Investment Function
Real Interest Rate


Philippines

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