Date&Time
June 14, 2021 (Monday) 12:15-12:50
Venue
ZOOM Webinar
Intended Audience
WIAPS Full-time Faculty/Research Associates, WIAPS Exchange Researchers/Visiting Scholars/Visiting Researchers, GSAPS MA/PhD Students
Presentation1
Presenter
KIKUCHI, Tomoo （Associate Professor, GSAPS）
Presentation Theme
Does Foreign Debt Contribute to Economic Growth?
Abstract
We study the relationship between foreign debt and economic growth using a panel data set of 114 countries from 1980 to 2015. We find that economic growth correlates positively with foreign debt and that the relationship is causal in nature by using sovereign credit rating as an instrumental variable. Furthermore, we find that foreign debt increases economic growth through private investment and capital accumulation, and that the mechanism is supported by “uphill” capital flows from non-OECD to OECD countries.
