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Financing investment in Thailand : the mix of foreign and domestic savings (Английский)

The purpose of this study is to analyze the elements that should underlie an appropriate foreign borrowing strategy and to suggest linkages with other macroeconomic policies. The methodology features the use of a non-linear, dynamic optimization model that derives the level of foreign borrowing that maximizes welfare. The benefits from borrowing stem from its contribution to higher investment and consumption smoothing over time. Both base run solutions...
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