Industrialization and Developing Countries’ Indebtedness: A Theoretical and Empirical Analysis
Author(s)
Yaghmaian, Behzad
Abstract
It is argued that the level of internationalization and the global accumulation of capital determines the accumulation of external debt among developing countries. Insignificant accumulation of foreign debt occurs in the pre-industrialization stage which increases when industrialization and economic development starts. Indebtedness escalates in the early stage of industrialization or import-substitution stage and is reduced during the higher levels of industrialization or the mature export-led level.
