Working Paper: NBER ID: w2502
Authors: Sebastian Edwards
Abstract: This paper deals with structural adjustment in the highly indebted countries. The origins of the debt crisis are first analyzed. Then the nature of the adjustment followed by the debt ridden countries between 1982- 1987 is discussed. It is noted that for most nations the adjustment has been highly recessive. Next, the potential role of trade reforms in securing the resumption of sustained growth is analyzed.
Keywords: structural adjustment; debt crisis; trade reforms; economic growth
JEL Codes: F34; H63
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| structural adjustment policies (E69) | declines in real incomes (E25) |
| structural adjustment policies (E69) | increases in unemployment (J64) |
| trade liberalization (F13) | economic growth (O49) |
| nominal devaluations (F31) | improvements in the real exchange rate (F31) |
| nominal devaluations (F31) | better economic performance (P17) |