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Kevin Greenidge is with the IMF, Roland Craigwell is with the University of the West Indies, and Chrystol Thomas and Lisa Drakes are with the Central Bank of Barbados.
Positive growth can be achieved when countries with low stocks of capital use the borrowed funds for productive investment.
The ECCU states include: Antigua and Barbuda, Grenada, Dominica, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines.
Specifically, works by Williams and Daniel (1991), the World BankError! Bookmark not defined. (1994), Boamah (1997), Lewis and Craigwell (1998), Peters (2001), and Downes (2003). Note that a wider review of the literature on these variables is contained in Greenidge (2006).
This is the average of the debt coefficients between 22 and 29 percent levels of debt to GDP.
The Eviews programs for the threshold estimation and bootstrapping can be obtained from the authors.