Document Type

Working Paper

Publication Date

12-20-2016

College/Unit

Chambers College of Business and Economics

Document Number

16-23

Department/Program/Center

Economics

Abstract

The impacts of various economic and institutional factors transcend the borders of a nation and ow over to adjacent countries. Past research has found that there are spatial spillovers in economic growth, development of institutions, governance quality and institutional quality. This paper conducts a study on the direct and indirect effects of debt relief from the Heavily Indebted Poor Country (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI) programs. The IMF and the World Bank provide debt relief to the member countries that have passed the Decision Point of the HIPC Process. Using the Spatial Durbin Model (SDM) model, this study shows that there are negative spatial spillovers of the impacts of being a HIPC member on neighboring countries.

Included in

Economics Commons

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