{
  "title": "External Debt and Economic Reform: Does a Pain Reliever Delay the Necessary Treatment?",
  "publication": "IMF Working Papers, March 1, 2007",
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  "summary": "Recent literature argues that conflict in shifting adjustment costs between different socioeconomic groups delays necessary reforms and finds that such reforms often follow economic crises.",
  "sections": [
    {
      "heading": "Main research question and scope",
      "content": "- Investigates whether external borrowing by the private sector can delay necessary economic reform.\n- Expands recent literature that links conflict over shifting adjustment costs between socioeconomic groups to delays in reform and observes that reforms often follow economic crises.\n- Empirical analysis based on a large panel of developing and emerging economies."
    },
    {
      "heading": "Key findings",
      "content": "- External borrowing by the private sector may lead to a further delay in economic reform beyond delays caused by domestic redistribution conflicts.\n- Empirical evidence supports the argument that external financing can act like a \"pain reliever,\" postponing the much needed \"treatment\" of a \"sick\" economy by reform.\n- The delay in reform associated with external borrowing is linked to slower economic growth."
    },
    {
      "heading": "Empirical evidence and methodology (as described)",
      "content": "- Uses a large panel of developing and emerging economies to test theoretical extensions that include private-sector external borrowing.\n- Results from the panel analysis support the model predictions that external financing can postpone reforms and slow growth."
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: External debt, Financial crises, Public debt, Short term interest rates, Structural reforms\n- Keywords: dummy variable, economic crisis, economic reform, WP\n\n---\n\n Content in this bundle\n\n- Wp0750\n  - Wp0750 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp0750 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/external-debt-and-economic-reform-does-a-pain-reliever-delay-the-necessary-treatment-20465"
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    "Authors: Athanasios Vamvakidis",
    "Published: March 1, 2007",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451866148.001",
    "Investigates whether external borrowing by the private sector can delay necessary economic reform.",
    "Expands recent literature that links conflict over shifting adjustment costs between socioeconomic groups to delays in reform and observes that reforms often follow economic crises.",
    "Empirical analysis based on a large panel of developing and emerging economies.",
    "External borrowing by the private sector may lead to a further delay in economic reform beyond delays caused by domestic redistribution conflicts.",
    "Empirical evidence supports the argument that external financing can act like a \"pain reliever,\" postponing the much needed \"treatment\" of a \"sick\" economy by reform.",
    "The delay in reform associated with external borrowing is linked to slower economic growth.",
    "Uses a large panel of developing and emerging economies to test theoretical extensions that include private-sector external borrowing.",
    "Results from the panel analysis support the model predictions that external financing can postpone reforms and slow growth.",
    "Subject: External debt, Financial crises, Public debt, Short term interest rates, Structural reforms",
    "Keywords: dummy variable, economic crisis, economic reform, WP",
    "**Wp0750**"
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