01890cas a2200277 a 4500 AALejournalIMF011940 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475504507 1018-5941 BD-DhAAL BD-DhAAL Drakes, Lisa. Threshold Effects of Sovereign Debt : Evidence From the Caribbean / Lisa Drakes, Chrystol Thomas, Roland Craigwell, Kevin Greenidge. Washington, D.C. : International Monetary Fund, 2012. 1 online resource (23 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 addresses the issue of threshold effects between public debt and economic growth in the Caribbean. The main finding is that there exists a threshold debt to gross domestic product (GDP) ratio of 55-56 percent. Moreover, the debt dynamics begin changing well before this threshold is reached. Specifically, at debt levels lower than 30 percent of GDP, increases in the debt-to-GDP ratio are associated with faster economic growth. However, as debt rises beyond 30 percent, the effects on economic growth diminishes rapidly and at debt levels reaching 55-56 percent of GDP, the growth impacts switch from positive to negative. Thus, beyond this threshold, debt becomes a drag on growth. Mode of access: Internet Craigwell, Roland. Greenidge, Kevin. Thomas, Chrystol. IMF Working Papers; Working Paper ; No. 2012/157 Full text available on IMF http://elibrary.imf.org/view/journals/001/2012/157/001.2012.issue-157-en.xml IMF e-Library