Debt trap, debt burden shifting, and welfare loss:
| dc.contributor.author | Noor Alam | |
| dc.date.accessioned | 2014-11-18T07:34:24Z | |
| dc.date.available | 2014-11-18T07:34:24Z | |
| dc.date.issued | 2007 | |
| dc.description | PhD | en_US |
| dc.description.abstract | This study adopted a macro approach for debt trap, a subject that was much neglected in terms of empirical evidences. The study represented the limited attempts to model debt trap by operationalizing it through the basic borrowing fundamentals. By studying the debt trap phenomenon, the study provided insights into how to avoid debt trap and to identify good debt management practices that would eventually lead the country to better development. The study has selected a group of fourteen Asian Pacific Developing countries which are Bangladesh, Fiji, India, Indonesia, Korea, Malaysia, Myanmar, Nepal, Pakistan, Papua New Guinea, Philippines, Singapore, Sri Lanka, and Thailand. These countries have been classified as debt trap and non debt trap countries based on basic borrowing fundamentals. The study followed panel data approach for a period of thirty years (i.e., from 1971 to 2000). Findings of this study show that the debt trap countries exhibit an explosive growth trend in external debt that creates the moral hazard behavior on the part of the policy makers to shift the debt burden by taking in either increased debt or prolonging the maturity period further and this eventually affects the nation’s well being. Non debt trap countries followed basic borrowing fundamentals closely and managed their foreign exchange risk exposures very well. Moreover, they utilized the borrowing funds prudently and appropriately channeled for development purposes. In contrast, debt trap countries adopted an aggressive debt financing and diverted borrowing funds towards unproductive means. They did not manage the foreign exchange risk exposure properly. The rapid depreciation in their domestic currency caused capital loss that exacerbated the situation. | en_US |
| dc.identifier.uri | http://hdl.handle.net/123456789/566 | |
| dc.language.iso | en | en_US |
| dc.subject | Management | en_US |
| dc.subject | Debt trap | en_US |
| dc.subject | debt burden shifting | en_US |
| dc.subject | welfare loss | en_US |
| dc.subject | developing countries | en_US |
| dc.title | Debt trap, debt burden shifting, and welfare loss: | en_US |
| dc.title.alternative | a comparative study on a group of fourteen Asian Pacific developing countries | en_US |
| dc.type | Thesis | en_US |
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