Date of Award


Document Type


Degree Name

Master of Arts (MA)



First Advisor

Dr. Kim Sosin


This study investigates the relationship between external debt and the growth rate of GDP per capita based on a total sample of 57 countries consisting of two different groups. The first group is classified as Highly Indebted Poor Countries (HIPCs) because they qualify for HIPC debt relief initiative. The second group includes some middle income developing countries not qualifying for HIPC debt relief initiative. The study uses panel data with different methods of estimations. The results of this study indicate that the coefficients of debt variables were strongly significant and negatively related to economic growth, not only in the first group but in the second group as well.


A Thesis Presented to the Department of Economics And the Faculty of the Graduate College University of Nebraska In Partial Fulfillment of the requirements for the Degree Master of Arts in Economics University of Nebraska at Omaha. Copyright Asaad Najib April, 2005