FOREIGN DEBT AND ECONOMIC-GROWTH IN THE WORLD-SYSTEM

Citation
Ds. Glasberg et Kb. Ward, FOREIGN DEBT AND ECONOMIC-GROWTH IN THE WORLD-SYSTEM, Social science quarterly, 74(4), 1993, pp. 703-720
Citations number
36
Language
INGLESE
art.tipo
Article
Categorie Soggetti
Social, Sciences, Interdisciplinary
Journal title
ISSN journal
0038-4941
Volume
74
Issue
4
Year of publication
1993
Pages
703 - 720
Database
ISI
SICI code
0038-4941(1993)74:4<703:FDAEIT>2.0.ZU;2-4
Abstract
Past research has defined economic dependency along dimensions of trad e dependency and foreign investment. The authors argue that the presen t phase of world-system development is shaped by finance capital and d ebt dependency. Debt dependence refers to dependence on flows and stoc ks of concessional and nonconcessional debt and resulting debt service ratios to finance development. While flows of loans may increase econ omic growth, stocks of debt inhibit development. In their analyses the authors find that trade and investment variables still had significan t negative effects on economic growth between 1973 and 1985. At the sa me time, stocks of nonconcessional debt and debt service ratios were b eginning to have negative effects of economic growth. The authors sugg est additional case studies in future research to explore these relati onships.