A note on the burden of the Mexican foreign debt

In: Journal of development economics, Band 21, Heft 1, S. 111-129

Abstract

Given the reduced availability of foreign capital in Mexico, the relevant question is whether the country will be able to generate enough internal savings to compensate and thus produce the necessary flow of investment to sustain an adequate rate of growth. The authors also examine the burden of the interest rate that Mexico is paying on its foreign debt, in terms of additional required savings and lower economic growth