rmed to assess the relationships between external debt growth, as an independent or explanatory variable, and gross national product (GNP) growth, the unemployment rate, net export growth, the international currency exchange rate, the rate of inflation, and interest rates, all as dependent variables. These relationships were examined on the basis of data applicable to the economy of Colombia. In the assessments of these relationships, selected dependent variables were included in some of the analyses as additional explanatory variables in establishing the nature of the relationship between external debt level growth and a specific macroeconomic measure of the Colombian economy. Growth in the money supply in the Colombian economy was also included as an additional explanatory variable in some of the analyses.
The period of analysis was 1971 through 1990 inclusive. Data were also collected for 1970 to provide for measurement of growth in specified variables external debt, GNP, and net exports. Data for the variables were stated in the following terms:
1. External debt growth (EXDEGR). Data pertaining to Colombia's total public and private external debt were stated in millions of US dollars. Annual changes in external debt levels were calculated in percentage terms, and the external debt growth variable was stated as a percent.
2. Gross national product growth (GNPGRO). Data pertaining to Colombia's GNP were stated in millions of US dollars. Annual changes in GNP levels were calculated in percentage terms, and the GNP growth variable was stated as a percent. 3. Unemployment (UNEMP). Data pertaining to unemployment in the Colombian economy were stated as a percentage of the country's work force. Percentage levels of unemployment, as opposed to annual changes in the percentage level of unemployment, were used to represent this variable.
4. Net export growth (NETXGR). Data pertaining to Colombia's net exports ...