00976nam a2200085Ia 4500100002000000245013800020260000900158520070400167583001900871  aBourne, Compton  aReal debt service capacity of Commonwealth Caribbean countries : a preliminary econometric study of Barbados and Trinidad and Tobago.  c1990  aAdvances the concept of real debt service capacity as the capacity of an economy to honour its external debt obligations without depressing its economic growth rate, employment levels and creating other serious macroeconomic problems.  Draws the following conclusions from the econometric results: (1) large abrupt increases in debt service payments may result in serious depressions of domestic economic activity in small island economies; (2) debt relief resulting in reduced debt outflows could serve to resuscitate investment and economic growth; and (3) overall, the real debt service capacity of small highly specialized open economies such as Barbados and Trinidad and Tobago is very limited.  c3/7/00kM2LMGR