Public Debt and Productivity: The Difficult Quest for Growth in Jamaica

WPIEA2006235 Image
Price:  $18.00

Author/Editor: Rodolphe Blavy
Release Date: © October, 2006
ISBN : 978-1-45186-495-3
Stock #: WPIEA2006235
English
Stock Status: Available

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Description

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 productivity growth and the allocation of resources in Jamaica, the study finds that high public debt has been associated with macroeconomic uncertainty and an output structure that relied excessively on a few maturing sectors with limited scope for productivity growth. Furthermore, public investment has been crowded out by debt service, further adversely affecting productivity growth.




More publications in this series: Working Papers


More publications by: Rodolphe Blavy