... decrease the debt service growth rate by 0.51 percent. On the otherhand, the exchange rate (ER) raises external debt services. The direct effect and total effect-1- Relationship Using the Simultaneous ... 0.41Where, the growth rate of debt service, the growth rate of export, the growth rate of debt stock, the growth rate of capital inflow, the ratio of capital inflow to the debt stock, the ratio ... Equation The equation (2) implies that the debt service is determined by the export growth rate,exchange rate, the growth in external debt stock, economic growth and I1977 dummyvariable. From the debt...