TY  - BOOK
AU  - Senhadji,Abdelhak
TI  - Sources of Debt Accumulation in a Small Open Economy
T2  - IMF Working Papers; Working Paper
SN  - 1451856601 :
SN  - 1018-5941
PY  - 1997///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Debt Accumulation
KW  - imf
KW  - Developing Countries
KW  - External Shocks
KW  - Foreign Debt
KW  - Incomplete Information
KW  - Open Economy
KW  - Brazil
KW  - Congo, Democratic Republic of the
KW  - Dominican Republic
KW  - Sri Lanka
KW  - Tunisia
N2  - This paper analyzes the borrowing behavior of a small open economy of a developing country that relies heavily on imports for its capital formation and faces an upward-sloping supply function of foreign loans. Decision makers face uncertainty about the longevity of external shocks. That uncertainty generates forecast errors that lead to substantial debt accumulation. It is found that the assumption of an upward-sloping supply function of foreign loans, which is a more realistic formulation for developing countries than the usual perfect elasticity, offers an alternative to the Uzawa-type utility function for analyzing asset accumulation in the small open economy framework
UR  - http://elibrary.imf.org/view/IMF001/06329-9781451856606/06329-9781451856606/06329-9781451856606.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451856606
ER  -