Online Content

1. Parayno, Phares P. with Khalid Saeed, "The Dynamics of Indebtedness in the Developing Countries: The Case of the Philippines"

Type:
Document
Date Created:
1991
Collection:
System Dynamic Society Records
Collecting Area:
University Archives
Collection ID:
ua435
Parent Record(s):
23d738ba88f8333bc39725f9cb5bd0b8, 5d7e83a7ca6c4cd9ab0ccc8a805a7aa7, and d1cfc0fcedb4f6334f34d1ca11dcf292
Thumbnail Path Ss:
/downloads/zw12zp96x?file=thumbnail
System Modified Dtsi:
2020-01-02T18:46:48Z
Description:
The relationship between foreign capital inflows, the build-up of debt, and economic growth in a developing country are analyzed using a system dynamics model of the pertinent processes. The Philippines serves as an empirical case to apply the model. The model incorporates the macro-structure of economic growth, the micro-structure of market-clearing mechanisms, and an accounting of the money flows. The study shows that economic policies enhancing debt-servicing ability create better economic performance than those limiting loan giving. Increasing capital-intensity is the most important part of such policies. They are further facilitated by encouraging investment through decreasing taxes and enhancing demand through increasing government spending and promoting exports. Thus, augmentation of domestic resources by foreign capital inflows appears to be a viable economic strategy.