Borrowing for Growth : Big Pushes and Debt Sustainability in Low-Income Countries

The paper evaluates big push borrowing-and-investment programs in a new model-based framework of debt sustainability that is explicitly designed for policy analysis. The new framework is grounded in a fully-articulated, dynamic macroeconomic model. It allows for financing schemes that mix concession...

Full description

Bibliographic Details
Main Authors:	Zanna, Luis-Felipe, Buffie, Edward F., Portillo, Rafael, Berg, Andrew, Pattillo, Catherine
Format:	Journal Article
Published:	Published by Oxford University Press on behalf of the World Bank 2021
Subjects:	DEBT DEBT SUSTAINABILITY SOVEREIGN DEBT CAPITAL INVESTMENT INFRASTRUCTURE FISCAL POLICY PUBLIC INVESTMENT ECONOMIC GROWTH
Online Access:	http://hdl.handle.net/10986/35426

id	okr-10986-35426
recordtype	oai_dc
spelling	okr-10986-354262021-04-23T14:02:21Z Borrowing for Growth : Big Pushes and Debt Sustainability in Low-Income Countries Zanna, Luis-Felipe Buffie, Edward F. Portillo, Rafael Berg, Andrew Pattillo, Catherine DEBT DEBT SUSTAINABILITY SOVEREIGN DEBT CAPITAL INVESTMENT INFRASTRUCTURE FISCAL POLICY PUBLIC INVESTMENT ECONOMIC GROWTH The paper evaluates big push borrowing-and-investment programs in a new model-based framework of debt sustainability that is explicitly designed for policy analysis. The new framework is grounded in a fully-articulated, dynamic macroeconomic model. It allows for financing schemes that mix concessional, external commercial, and domestic debt, while taking into account the impact of public investment on growth and constraints on the speed and magnitude of fiscal adjustment. Supplementing concessional loans with nonconcessional borrowing in world capital markets is generally a high-risk, high-return strategy. It may greatly enhance the prospects for debt sustainability or lead to spectacular failure; much depends on the fine details governing debt contracts, the dynamics of growth, and the speed of fiscal adjustment. 2021-04-12T19:06:34Z 2021-04-12T19:06:34Z 2019-10 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/35426 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research Publications & Research :: Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	DEBT DEBT SUSTAINABILITY SOVEREIGN DEBT CAPITAL INVESTMENT INFRASTRUCTURE FISCAL POLICY PUBLIC INVESTMENT ECONOMIC GROWTH
spellingShingle	DEBT DEBT SUSTAINABILITY SOVEREIGN DEBT CAPITAL INVESTMENT INFRASTRUCTURE FISCAL POLICY PUBLIC INVESTMENT ECONOMIC GROWTH Zanna, Luis-Felipe Buffie, Edward F. Portillo, Rafael Berg, Andrew Pattillo, Catherine Borrowing for Growth : Big Pushes and Debt Sustainability in Low-Income Countries
description	The paper evaluates big push borrowing-and-investment programs in a new model-based framework of debt sustainability that is explicitly designed for policy analysis. The new framework is grounded in a fully-articulated, dynamic macroeconomic model. It allows for financing schemes that mix concessional, external commercial, and domestic debt, while taking into account the impact of public investment on growth and constraints on the speed and magnitude of fiscal adjustment. Supplementing concessional loans with nonconcessional borrowing in world capital markets is generally a high-risk, high-return strategy. It may greatly enhance the prospects for debt sustainability or lead to spectacular failure; much depends on the fine details governing debt contracts, the dynamics of growth, and the speed of fiscal adjustment.
format	Journal Article
author	Zanna, Luis-Felipe Buffie, Edward F. Portillo, Rafael Berg, Andrew Pattillo, Catherine
author_facet	Zanna, Luis-Felipe Buffie, Edward F. Portillo, Rafael Berg, Andrew Pattillo, Catherine
author_sort	Zanna, Luis-Felipe
title	Borrowing for Growth : Big Pushes and Debt Sustainability in Low-Income Countries
title_short	Borrowing for Growth : Big Pushes and Debt Sustainability in Low-Income Countries
title_full	Borrowing for Growth : Big Pushes and Debt Sustainability in Low-Income Countries
title_fullStr	Borrowing for Growth : Big Pushes and Debt Sustainability in Low-Income Countries
title_full_unstemmed	Borrowing for Growth : Big Pushes and Debt Sustainability in Low-Income Countries
title_sort	borrowing for growth : big pushes and debt sustainability in low-income countries
publisher	Published by Oxford University Press on behalf of the World Bank
publishDate	2021
url	http://hdl.handle.net/10986/35426
_version_	1764483008354582528

Borrowing for Growth : Big Pushes and Debt Sustainability in Low-Income Countries

Similar Items