01799cas a2200265 a 4500 AALejournalIMF002799 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451875904 1018-5941 BD-DhAAL BD-DhAAL Nguyen, Toan. External Debt, Public Investment, and Growth in Low-Income Countries / Toan Nguyen, Benedict Clements, Rina Bhattacharya. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (25 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the channels through which external debt affects growth in low-income countries. Our results suggest that the substantial reduction in the stock of external debt projected for highly indebted poor countries (HIPCs) would directly increase per capita income growth by about 1 percentage point per annum. Reductions in external debt service could also provide an indirect boost to growth through their effects on public investment. If half of all debt-service relief were channeled for such purposes without increasing the budget deficit, then growth could accelerate in some HIPCs by an additional 0.5 percentage point per annum. Mode of access: Internet Bhattacharya, Rina. Clements, Benedict. IMF Working Papers; Working Paper ; No. 2003/249 Full text available on IMF http://elibrary.imf.org/view/journals/001/2003/249/001.2003.issue-249-en.xml IMF e-Library