01708cas a2200241 a 4500 AALejournalIMF004782 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451866148 1018-5941 BD-DhAAL BD-DhAAL Vamvakidis, Athanasios. External Debt and Economic Reform : Does a Pain Reliever Delay the Necessary Treatment? / Athanasios Vamvakidis. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (27 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 Recent literature argues that conflict in shifting adjustment costs between different socioeconomic groups delays necessary reforms and finds that such reforms often follow economic crises. This paper expands these models by including external borrowing by the private sector and shows that this may lead to a further delay in economic reform. Empirical evidence based on a large panel of developing and emerging economies supports this argument and shows that the result is slower economic growth. External financing sometimes acts like a "pain reliever," postponing the much needed "treatment" of a "sick" economy by reform. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2007/050 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/050/001.2007.issue-050-en.xml IMF e-Library