The Growth of Consumer Debt and its Effect on Economic Performance in Emerging Market Economies: Turkey, China, Brazil

• Main Author: Tsai, Sunny
• Format: Others
• Published: Scholarship @ Claremont 2012
• Subjects: Household debt; Private debt; Emerging markets; Export-led development; Consumer-driven growth; Consumer spending; GDP growth; Economics; International and Area Studies
• Online Access: http://scholarship.claremont.edu/cmc_theses/503; http://scholarship.claremont.edu/cgi/viewcontent.cgi?article=1533&context=cmc_theses

As emerging market economies gain increasing influence and importance in the global economy, any development with a potentially destabilizing effect on the economic performance on such countries should be carefully monitored. This paper examines one particular development: the rise of consumer debt. Through the case studies of Turkey, China, and Brazil, this paper seeks to analyze the relationship between an increase in consumer debt and a country's GDP growth in emerging markets and how a detrimental relationship could severely impact the international economy at large.