THE DEBT CRISIS* Structural Explanations of Country Performance
نویسندگان
چکیده
This paper develops a cross-country statistical model of debt rescheduling, and the secondary market valuation of LDC debt, which links these variables to key structural characteristics of developing countries, such as the trade regime, the degree of income inequality, and the share of agriculture in GNP. Our most striking finding is that higher income inequality is a significant predictor of a higher probability of debt rescheduling in a cross-section of middle-income countries. We attribute this correlation to various difliculties of political management in economies with extreme inequality. We also find that outward-orientation of the trade regime is a significant predictor of a reduced probability of debt rescheduling.
منابع مشابه
Simultaneous Occurrence of Banking Debt and Currency Crises (Triple Crises) in Iranian Economy and Its Determining Factors During the Period 1980-2017
In monetary and financial literature, financial crises include a wide range of crises. But in general, there are three important types of financial crisis, including the currency crisis. The banking crisis and the debt crisis. The aim of this study is to simultaneously analyze the occurrence of banking, debt and currency crises, known as the three crises in Iran. For this purpose, first to dete...
متن کاملFinancial Crisis Contagion and the OPEC Oil Market
The impact of the financial crisis on the OPEC oil market is important to us as an important member of OPEC and an oil-exporting country with an oil-dependent economy. This study examines four networks, pre-financial crisis, US financial crisis, European debt crisis and post-financial crisis, using the contagion index and complex network for the period 2007-1-2 to 26-8-2019. The results show th...
متن کاملThe Relationship between the Public Debt and Economic Growth: An Analysis of PIIGS Countries
T he financial crisis that was started in the last months of 2008, spread out to all world countries in short-term and had broken out as public debt in the European Union and Euro area. Most affected countries from this financial crisis had been Portugal, Ireland, Italy, Greece, and Spain were named as PIIGS countries of Europe. The effect of public debt on economic growth had been a...
متن کاملFiscal Performance, Public Debt and Fiscal Consolidation in Korea
As for the East Asian countries, the total amount of government debt in Korea has risen sharply over the following several years in the wake of the Asian financial crisis. The purpose of this paper is to assess whether the current levels of government debt are sustainable for a severely attacked country, namely, Korea. Under the intertemporal budget constraint model, the study tests for fiscal ...
متن کاملExplaining the Effect of Crisis Management Characteristics on the Performance of Crisis Managers using the Structural Equation Modeling (Case Study: Southeastern Provinces of Iran)
A crisis is any event with low possibility of occurrence and high impact of consequences that disrupts the order of the main system or parts of it and threatens its stability. Therefore, a proper management of this event will play a pivotal role in the improvement of a society. In fact, making correct decisions for an optimal crisis management depends on the success of several levels, and the c...
متن کامل