We present the fundamental differential equation of economic growth of the neoclassical model subject to foreign borrowing. We obtained a threshold parameter , which can be used to control a country’s net export and its foreign debt. It is found that the fundamental equation of neoclassical economic growth is obtained from the combination of the income identity, gross investment identity and production function at time(t) and reveals that output (GDP) can be either consumed, invested or used to service foreign debt. The stability properties of the differential model are also investigated. Key words: Export-import, Interest rate, input-output factors, balance of payment, product
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