Incidence of external debt on the economic growth of Bolivia 1985-2019

Abstract

The external debt is a means of financing used by Bolivia to solve part of its public investment, constituting one of the factors that influences economic growth, seeking an increase in the production capacity of goods and services.

This research presents the most representative characteristics of economic growth in relation to Bolivia's external indebtedness in the period 1985-2019. The bibliographic method was used to identify data from certified records, and the statistical method for its analysis; Subsequently, an econometric model was estimated with the variables Gross Domestic Product (GDP), External Debt Balance (SDE) and Fixed Gross Investment (IBF).

In conclusion, it was determined that there is a significant relationship between economic growth and external debt; positive in the short run and positive decreasing in the long run.