01718cas a2200241 a 4500 AALejournalIMF007438 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451856606 1018-5941 BD-DhAAL BD-DhAAL Senhadji, Abdelhak. Sources of Debt Accumulation in a Small Open Economy / Abdelhak Senhadji. Washington, D.C. : International Monetary Fund, 1997. 1 online resource (26 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 analyzes the borrowing behavior of a small open economy of a developing country that relies heavily on imports for its capital formation and faces an upward-sloping supply function of foreign loans. Decision makers face uncertainty about the longevity of external shocks. That uncertainty generates forecast errors that lead to substantial debt accumulation. It is found that the assumption of an upward-sloping supply function of foreign loans, which is a more realistic formulation for developing countries than the usual perfect elasticity, offers an alternative to the Uzawa-type utility function for analyzing asset accumulation in the small open economy framework. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1997/146 Full text available on IMF http://elibrary.imf.org/view/journals/001/1997/146/001.1997.issue-146-en.xml IMF e-Library