01711cas a2200241 a 4500 AALejournalIMF010017 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451956535 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Debt Overhang, Debt Reduction and Investment : The Case of the Philippines. Washington, D.C. : International Monetary Fund, 1990. 1 online resource (30 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 While there is a substantial body of literature on the effects of 'debt overhang' on investment in heavily-indebted countries, there is surprisingly little empirical work available on this subject. This paper tests the hypothesis that the stock of foreign debt acts as a disincentive to private investment in the specific case of the Philippines. The empirical estimates provide support for this hypothesis, particularly after 1982. The estimates indicate that a USD 1.3 billion debt reduction (such as the one completed through the buyback operation in early 1990) would increase investment demand by something between one half and two percentage points of GNP. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1990/077 Full text available on IMF http://elibrary.imf.org/view/journals/001/1990/077/001.1990.issue-077-en.xml IMF e-Library