Research ArticleOpen accessIn the keywordsThe Relaxing of Capital Controls and Rise of External DebtChokri ZehriThis paper examines the impact of capital account liberalization on the external debt. The study is made for a panel of eight countries of South Mediterranean Countries (SMCs) over the period 1971 to 2015. We use different models to explain the growth of external debt. We find that capital account liberalization is negatively correlated with external debt. We also find … …American Journal of Economics and Business Administration, Vol. 9, Issue 4 · 11 Dec 2017 · 7,939 accessesView PDFCite