The paper analyzes Jamaica''s experience of low growth despite consistently high investment. Cross-country analysis provides evidence of a significant and negative relationship between total public debt and productivity growth. Looking at the specific channels through which high debt affects...

The paper analyzes Jamaica's experience of low growth despite consistently high investment. Cross-country analysis provides evidence of a significant and negative relationship between total public debt and productivity growth. Looking at the specific channels through which high debt affects...

Intro -- Contents -- I. INTRODUCTION -- II. THE PARADOX: LOW GROWTH AND HIGH INVESTMENT -- III. THE MISMEASUREMENT STORY -- IV. LOW PRODUCTIVITY: DOES THE LEVEL OF DEBT MATTER? -- V. HIGH DEBT AND DECLINING PRODUCTIVITY: THE CASE OF JAMAICA -- VI. TAKING STOCK: SUMMARY AND CONCLUSIONS -- REFERENCES.