Based on a dataset of 112 emerging economies and developing countries, this paper addresses two key questions regarding the accumulation of international reserves: first, has the accumulation of reserves effectively protected countries during the 2008-09 financial crisis? And second, what...

Following the 1980s debt crisis a consensus has emerged that there is a debt threshold in the debt-growth relationship. This paper estimates the debt threshold empirically using endogenous threshold model proposed by Hansen (1996, 2000) and several other modelling strategies to check the...

This paper investigates the relationship between external debt and economic growth in poor countries. The adverse effects of external debt on economic performance are due to the crowding out of public investment and to the disincentive effects, because of debt overhang and uncertainty....