Import substitution and structural change in Indian manufacturing industry 1950–1966 |
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| Authors: | Jaleel Ahmad |
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| Institution: | Quantitative Research in Economic Development , Harvard University , Cambridge, Massachusetts |
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| Abstract: | The paper links a simple aggregate model of growth‐cum‐external debt with an empirical formula for debt‐servicing capacity. Through simulations of growth and debt patterns, using data related to two groups of LDCs, the underlying conditions and the pattern of debt service problems which emerge are studied. Simulation of policies designed to alleviate debt‐service problems allows an assessment of the efficiency and suitability of different policies. The time dimension of debt problems and its relevance to policy are considered as well. The study raises doubts regarding the applicability of accepted beliefs and rules of thumb related to external debt management. |
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