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Optimal Borrowing Policies for Developing Countries: The Cases of Korea, the Philippines, and Thailand
Author:
International Monetary Fund
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Series:
IMF Working Papers
Volume/Issue:
Volume 1987: Issue 041
Language:
English
Publication Date:
01 Jan 1987
DOI:
https://doi.org/10.5089/9781451976151.001
ISBN:
9781451976151
ISSN:
1018-5941
Pages:
44
Keywords:
WP; current account; debt service; exchange rate; GNP ratio; debt accumulation; GNP growth; accumulation of Korea; rate of return; debt policy; debt problem; debt situation; tax ratio of Korea; debt indicator; debt literature; short-run debt sustainability; Current account deficits; Exports; Consumption; Capital productivity; East Asia
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper develops a theoretical framework for analyzing external debt policies of developing countries and applies it to assess the cases of three Asian countries, namely Korea, the Philippines, and Thailand. The “optimal debt policy” for a developing country is characterized in the first part of the paper. In the second, the experiences of these three countries during the period 1965–83 are compared with this theoretical benchmark. The empirical results show that, during this period, Korea was quite successful in managing its external debt, while the Philippines was less successful. The case of Thailand, in many respects, fell in between the other two, although closer to that of Korea.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 1987: Issue 041