Debt Reduction and Development: The Case of Mexico

by Sudarshn Gooptu

Overview

This study provides an in-depth analysis of the external debt problem of a country—Mexico—that allegedly faces a debt overhang, which inhibits long-term growth-oriented investment. Issues facing the debtor nation and its commercial bank creditors are simultaneously examined in order to move closer towards an understanding of the situation of debt-distressed developing countries. The need to address these issues on a case-by-case basis is emphasized, opposed to a global approach to solving the debt crisis presently recommended by some.

Not only does this work provide a survey of the theoretical literature on the international debt crisis it also provides a way of incorporating simultaneously the concerns of the opposing sides—debtor nations and creditor banks. It will be of interest to economists and policy-makers in international finance and trade and development economics.

Product Details

ISBN-13:	9780275942137
Publisher:	Bloomsbury Academic
Publication date:	01/26/1993
Pages:	240
Product dimensions:	6.14(w) x 9.21(h) x 0.56(d)

About the Author

SUDARSHAN GOOPTU is an Economist with the Debt and International Finance Division in the International Economics Department of the World Bank.

Table of Contents

Introduction
The International Debt Crisis: An Overview
Introduction
Trends in International Lending to LDC's
Default or Not to Default: That is the Question
A Survey of the Proposals Suggested to Deal with the Debt Crisis
The Debt Overhang and a Growth-Oriented Debt Reduction Strategy
Summary and Conclusions
Developments in Mexico until 1982: The Seeds of the Crisis are Sown
Mexico in the Post-1982 Period: Adjustment without Growth
The Mechanics of a Growth-Oriented Debt Reduction Strategy: A Theoretical Exposition
Empirical Findings from the Mexican Case
Appendix A: Summary of Proposals Suggested in the Context of the International Debt Crisis
Appendix B: Mexico: The "Maquiladora" Sector
Appendix C: Portfolio Investment in Mexico
Appendix D: Data Used for Econometric Analysis
Appendix E: Details of the Regression and Time Series Analysis of 1950-87 Mexican Data
Bibliography