This article investigates the effect of foreign debts on the economic growth of Latin American countries. It uses the panel data related to 15 countries in CONCACAF region for the period between 1985 and 2009. The results obtained in this study show that the economic growth rate is negative and significant in comparison to the indices of the foreign debts. In addition, this study experimentally shows that Labor Force Growth Rate and Investment are among the factors that could lead to the increase of economic growth. Investment in export-centered projects is the recommended policy of this study for decreasing the load of foreign debts and stimulating economic growth.

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