Abstract
The 1970s will be remembered as a period of drastically expanding international capital movements in the course of which a fundamental change in the financing of the current account deficits of developing countries took place. Grants, grant-like flows and direct investments, which in the mid-1960s accounted for well over half of the net flow of financial resources to developing countries, had fallen to one third of the net flow in 1979. Furthermore, within the increasing debt-creating flows the share of bilateral official sources had decreased in favour of loans from private creditors. Financial institutions, in particular, have become the main source of deficit financing.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Notes
Cf. H.W. Singer, “External Aid: For Plans or Projects?”, in: Economic Journal, vol. 75 (1965), p. 531 ff.
A. Gutowski, “Projektgebundene, nicht projektgebundene Kapitalhilfe oder Programmfinanzierung”, in: R. Meimberg (ed.), Voraussetzungen einer globalen Entwicklungspolitik und Beiträge zur Kosten-und Nutzenanalyse,Schriften des Vereins für Sozialpolitik NF Bd. 59, Berlin 1971, p. 197 ff.
For the following cf. M. Holthus, “Verschuldung und Verschuldungsfähigkeit von Entwicklungsländern”, in: Hamburger Jahrbuch für Wirtschafts-und Gesellschaftspolitik,26. Jahr (1981), p. 250 ff. and the literature quoted.
Cf. D. Avramovic, et al., Economic Growth and External Debt,Baltimore 1964, p. 13 ff.
Cf. P.D. Dhonte, “Describing External Debt Situations: A Roll-over-approach”, in: IMF-Papers, vol. XXII, no. 1 (1975);
C.R. Frank, W.R. Cline, “Measurement of Debt Servic-ing Capacity: An Application of Discriminant Analysis”, in: Journal of International Economics, no. 1 (1971);
G. Feder, R.E. Just, “A Study of Debt Servicing Capacity Applying Logical Analysis”, in: Journal of Development Economics, no. 4 (1977);
H.J. Petersen, “Debt Crisis of Developing Countries: A Pragmatic Approach to an Early Warning System”, in: Konjunkturpolitik,Jg. 23 (1977), H. 2.
Cf. R. Erbe, S. Schattner, “Indicator System for the Assessment of External Debt Situation of Developing Countries”, in: Intereconomics,no. 6 (1980), p. 287.
Cf. A. Gutowski, Foreign Indebtedness and Economic Growth: Is There a Limit to Foreign Financing? Paper presented to the Conference of the International Economic Association on Financing Problems of Developing Countries, Buenos Aires, October 26–30, 1981, p. 2.
Cf. for example H.B. Chenery, A.M. Strout, “Foreign Assistance and Economic Development”, in: The American Economic Review,vol. 56 (1966), no. 4.
Cf. A. Gutowski, op. cit., p. 6. A similar interpretation of the two gaps methodology has been given by W.J. Stevens, Capital Absorptive Capacity in Developing Countries, Leiden 1971, p. 43 ff.
Cf. A. Gutowski, op. cit.
Cf. M. Holthus, “Desenvolvimento Economico com Endividamento Externo: Riscos e Chances”, in: Divida Externa e Estrategia Brasiliera de Desenvolvimento, Rio de Janeiro 1981.
Cf. R. Erbe, “Foreign Indebtedness and Economic Growth: The Philippines”, in: Inter-economics,no. 3 (1982), p. 125.
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1983 Martinus Nijhoff Publishers, The Hague
About this chapter
Cite this chapter
Gutowski, A., Holthus, M. (1983). Limits to International Indebtedness. In: Fair, D.E., Bertrand, R. (eds) International Lending in a Fragile World Economy. Financial and Monetary Policy Studies, vol 7. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-6824-0_13
Download citation
DOI: https://doi.org/10.1007/978-94-009-6824-0_13
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-009-6826-4
Online ISBN: 978-94-009-6824-0
eBook Packages: Springer Book Archive