External Debt and Economic Growth

Sammanfattning:

Throughout the years most countries have incurred in borrowing money in order to finance many of their operations. Those loans and their accumulation have either benefited or impaired those countries’ ability to grow.

In this report we examine several factors that affect the gross domestic product (GDP) and their levels of impact with the sole purpose of inferring the relationship between debt and GDP. In addition, we will propose a cut-off point from which additional debt results in negative growth.