Growth in a Country's External Debt
This study examined the relationship
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This study examined the relationship between the growth in the external debt level of a country and selected macroeconomic measures of economic activity in that country. The research performed in the conduct of this examination was a combination of a literature review and quantitative analysis.The first chapter of this study reviews the theoretical literature relative to the effect on the external debt levels of developing countries of changes in the international currency exchange value of the United States (US) dollar. Major concepts and theories considered in this chapter include capital mobility, the international transmission of inflation, and the international linkage of economies. The second chapter of this study reviews the empirical literature relevant to external debt in the international economy. Major areas of interest addressed in this chapter are the status of external debt in the international economy, the origins of the international external debt crisis, the role of the International Monetary Fund in the development of the international external debt crisis, and the effects of the international external debt crisis on the economies of the US and Colombia. The third chapter of this study reviews literature specific to the economy of Colombia. Statistics relevant to the Colombian economy are presented in this chapter, together with a description and an assessment of the functioning of the Colombian economy during the 19801990 period.
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ebt growth and the interest rate level.
The predicting equation resulting from the multiple regression analysis was GNPGRO = 6.251340 + INTRAT(.027736) + EXDEGR(.083709). Statistical significance was established at p<.05 [F(1,18) = 6.075491]. Thus, GNP growth in the Colombian economy may be predicted to be 6.075 percent plus .028 percent
of the prevailing interest rate plus .084 percent of external debt growth. Exhibit 1
Regression Results: GNP Growth Dependent Variable
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Independent or Explanatory Variable Coefficient
Constant 6.2513396
Interest rate .0277359
External debt growth .0837092
R2 .532526
Fstatistic 6.075491
DurbanWatson statistic 2.090802
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Unemployment
The Pearson coefficient of correlation between the unemployment rate and exter
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Some common words found in the essay are:
Quantitative Models, COLOMBIA Introduction, Growth Pearson, , MONSGR Money, Colombia Statistics, INTRAT Data, NETXGR Data, EXDEGR Data, INFLAT Data, external debt, debt growth, external debt growth, colombian economy, gnp growth, money supply, data pertaining, annual changes, dependent variable, debt growth represents, + exdegr, represents external, growth represents error, represents external debt, net export growth,
Approximate Word count = 4069
Approximate Pages = 16 (250 words per page)
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