When Is External Debt Sustainable?
The article empirically examines the determinants of debt distress, defined as periods in which countries resort to any of three forms of exceptional finance: significant arrears on external debt, Paris Club rescheduling, and non-concessional Inter...
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| Format: | Journal Article |
| Language: | English en_US |
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Oxford University Press on behalf of the World Bank
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2006/09/17760901/external-debt-sustainable http://hdl.handle.net/10986/16425 |
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okr-10986-164252021-04-23T14:03:29Z When Is External Debt Sustainable? Kraay, Aart Nehru, Vikram ACCOUNTING ACCUMULATION OF ARREARS AID EFFECTIVENESS ARREARS BALANCE OF PAYMENTS BANK LOANS BANK POLICY BIASES BILATERAL CREDITORS CHECKS CONSUMER PRICE INDEX COUNTRY RISK CREDITOR CREDITORS CREDITWORTHINESS CURRENCY CURRENCY CRISES CURRENCY UNITS DEBT BURDEN DEBT BURDENS DEBT CRISES DEBT CRISIS DEBT DATA DEBT DEFAULT DEBT INTOLERANCE DEBT LEVEL DEBT LEVELS DEBT OUTSTANDING DEBT REDUCTION DEBT REDUCTIONS DEBT RELIEF DEBT RELIEF INITIATIVE DEBT RESCHEDULING DEBT SECURITIES DEBT SERVICE DEBT SERVICE OBLIGATIONS DEBT SERVICE PAYMENTS DEBT SERVICING DEBT SUSTAINABILITY DEBT-SERVICE DEBT-SERVICE OBLIGATIONS DEBTOR DEBTOR COUNTRIES DEBTOR COUNTRY DEBTOR REPORTING DEBTOR REPORTING SYSTEM DEBTORS DEBTS DEPENDENT DERIVATIVE DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ASSISTANCE DISBURSEMENTS DUMMY VARIABLE ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC POLICY EMERGING MARKET EMERGING MARKET ECONOMIES EXCESSIVE BORROWING EXCESSIVE DEBT EXCHANGE RATE MOVEMENTS EXPORT EARNINGS EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL DEBT BURDEN EXTERNAL DEBT BURDENS EXTERNAL DEBT SERVICE EXTERNAL OBLIGATIONS EXTERNAL SHOCKS FACE VALUE FACE VALUE OF DEBT FINANCIAL CRISIS FINANCIAL STATEMENTS FUTURE DEBT GLOBAL DEVELOPMENT FINANCE GOVERNMENT REVENUES GRACE PERIODS HIGH DEBT HIGHLY INDEBTED COUNTRIES HOLDING IMPORTANCE OF LIQUIDITY INCIDENCE OF DEBT INCOME INEQUALITY INDEBTED INDEBTED POOR COUNTRIES INDEBTEDNESS INFLATION INSTITUTIONAL INVESTOR INTEREST RATES INTERNATIONAL BANK INTERNATIONAL DEBT INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL RESERVES LENDING POLICIES LEVEL OF DEBT LEVELS OF DEBT LIQUIDITY LOAN LOCAL CURRENCY LOWER DEBT MACROECONOMIC INSTABILITY MACROECONOMIC STABILITY MACROECONOMIC VARIABLES MARKET INTEREST RATES MATURITY MONETARY FUND MULTILATERAL CREDITORS MULTILATERAL DEBT MULTILATERAL DEBT RELIEF MULTILATERAL LENDERS PAST DEBT PAST DEBTS PATTERNS OF DEBT PAYMENTS IMBALANCES POLICY ENVIRONMENT POLICY RESPONSE PORTFOLIO PRESENT VALUE PRESENT VALUE OF DEBT PRIVATE CREDITORS PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION PROTECTION OF PROPERTY PUBLIC SERVICES REAL EXCHANGE RATE RECIPIENT COUNTRY REPAYMENT REPAYMENT HISTORIES REPAYMENT HISTORY REPAYMENT PERFORMANCE REPAYMENT RATES REPAYMENTS RESERVES RISK OF DEBT RULE OF LAW SECONDARY MARKET SHARE OF DEBT SINGLE DEBT SOLVENCY SOVEREIGN DEBT SOVEREIGN DEBT CRISES SOVEREIGN DEFAULT SOVEREIGN RISK SOVEREIGN RISK RATINGS STOCK OF DEBT SYSTEMIC RISK TOTAL DEBT TYPE OF DEBT VALUE OF DEBT The article empirically examines the determinants of debt distress, defined as periods in which countries resort to any of three forms of exceptional finance: significant arrears on external debt, Paris Club rescheduling, and non-concessional International Monetary Fund lending. Probit regressions show that three factors explain a substantial fraction of the cross-country and time-series variation in the incidence of debt distress: the debt burden, the quality of policies and institutions, and shocks. The relative importance of these factors varies with the level of development. These results are robust to a variety of alternative specifications, and the core specifications have substantial out-of-sample predictive power. The quantitative implications of these results are examined for the lending strategies of official creditors. 2013-12-20T15:48:44Z 2013-12-20T15:48:44Z 2006-09-01 Journal Article http://documents.worldbank.org/curated/en/2006/09/17760901/external-debt-sustainable World Bank Economic Review doi:10.1093/wber/lhl006 http://hdl.handle.net/10986/16425 English en_US World Bank CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Publications & Research :: Journal Article |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
ACCOUNTING ACCUMULATION OF ARREARS AID EFFECTIVENESS ARREARS BALANCE OF PAYMENTS BANK LOANS BANK POLICY BIASES BILATERAL CREDITORS CHECKS CONSUMER PRICE INDEX COUNTRY RISK CREDITOR CREDITORS CREDITWORTHINESS CURRENCY CURRENCY CRISES CURRENCY UNITS DEBT BURDEN DEBT BURDENS DEBT CRISES DEBT CRISIS DEBT DATA DEBT DEFAULT DEBT INTOLERANCE DEBT LEVEL DEBT LEVELS DEBT OUTSTANDING DEBT REDUCTION DEBT REDUCTIONS DEBT RELIEF DEBT RELIEF INITIATIVE DEBT RESCHEDULING DEBT SECURITIES DEBT SERVICE DEBT SERVICE OBLIGATIONS DEBT SERVICE PAYMENTS DEBT SERVICING DEBT SUSTAINABILITY DEBT-SERVICE DEBT-SERVICE OBLIGATIONS DEBTOR DEBTOR COUNTRIES DEBTOR COUNTRY DEBTOR REPORTING DEBTOR REPORTING SYSTEM DEBTORS DEBTS DEPENDENT DERIVATIVE DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ASSISTANCE DISBURSEMENTS DUMMY VARIABLE ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC POLICY EMERGING MARKET EMERGING MARKET ECONOMIES EXCESSIVE BORROWING EXCESSIVE DEBT EXCHANGE RATE MOVEMENTS EXPORT EARNINGS EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL DEBT BURDEN EXTERNAL DEBT BURDENS EXTERNAL DEBT SERVICE EXTERNAL OBLIGATIONS EXTERNAL SHOCKS FACE VALUE FACE VALUE OF DEBT FINANCIAL CRISIS FINANCIAL STATEMENTS FUTURE DEBT GLOBAL DEVELOPMENT FINANCE GOVERNMENT REVENUES GRACE PERIODS HIGH DEBT HIGHLY INDEBTED COUNTRIES HOLDING IMPORTANCE OF LIQUIDITY INCIDENCE OF DEBT INCOME INEQUALITY INDEBTED INDEBTED POOR COUNTRIES INDEBTEDNESS INFLATION INSTITUTIONAL INVESTOR INTEREST RATES INTERNATIONAL BANK INTERNATIONAL DEBT INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL RESERVES LENDING POLICIES LEVEL OF DEBT LEVELS OF DEBT LIQUIDITY LOAN LOCAL CURRENCY LOWER DEBT MACROECONOMIC INSTABILITY MACROECONOMIC STABILITY MACROECONOMIC VARIABLES MARKET INTEREST RATES MATURITY MONETARY FUND MULTILATERAL CREDITORS MULTILATERAL DEBT MULTILATERAL DEBT RELIEF MULTILATERAL LENDERS PAST DEBT PAST DEBTS PATTERNS OF DEBT PAYMENTS IMBALANCES POLICY ENVIRONMENT POLICY RESPONSE PORTFOLIO PRESENT VALUE PRESENT VALUE OF DEBT PRIVATE CREDITORS PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION PROTECTION OF PROPERTY PUBLIC SERVICES REAL EXCHANGE RATE RECIPIENT COUNTRY REPAYMENT REPAYMENT HISTORIES REPAYMENT HISTORY REPAYMENT PERFORMANCE REPAYMENT RATES REPAYMENTS RESERVES RISK OF DEBT RULE OF LAW SECONDARY MARKET SHARE OF DEBT SINGLE DEBT SOLVENCY SOVEREIGN DEBT SOVEREIGN DEBT CRISES SOVEREIGN DEFAULT SOVEREIGN RISK SOVEREIGN RISK RATINGS STOCK OF DEBT SYSTEMIC RISK TOTAL DEBT TYPE OF DEBT VALUE OF DEBT |
| spellingShingle |
ACCOUNTING ACCUMULATION OF ARREARS AID EFFECTIVENESS ARREARS BALANCE OF PAYMENTS BANK LOANS BANK POLICY BIASES BILATERAL CREDITORS CHECKS CONSUMER PRICE INDEX COUNTRY RISK CREDITOR CREDITORS CREDITWORTHINESS CURRENCY CURRENCY CRISES CURRENCY UNITS DEBT BURDEN DEBT BURDENS DEBT CRISES DEBT CRISIS DEBT DATA DEBT DEFAULT DEBT INTOLERANCE DEBT LEVEL DEBT LEVELS DEBT OUTSTANDING DEBT REDUCTION DEBT REDUCTIONS DEBT RELIEF DEBT RELIEF INITIATIVE DEBT RESCHEDULING DEBT SECURITIES DEBT SERVICE DEBT SERVICE OBLIGATIONS DEBT SERVICE PAYMENTS DEBT SERVICING DEBT SUSTAINABILITY DEBT-SERVICE DEBT-SERVICE OBLIGATIONS DEBTOR DEBTOR COUNTRIES DEBTOR COUNTRY DEBTOR REPORTING DEBTOR REPORTING SYSTEM DEBTORS DEBTS DEPENDENT DERIVATIVE DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ASSISTANCE DISBURSEMENTS DUMMY VARIABLE ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC POLICY EMERGING MARKET EMERGING MARKET ECONOMIES EXCESSIVE BORROWING EXCESSIVE DEBT EXCHANGE RATE MOVEMENTS EXPORT EARNINGS EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL DEBT BURDEN EXTERNAL DEBT BURDENS EXTERNAL DEBT SERVICE EXTERNAL OBLIGATIONS EXTERNAL SHOCKS FACE VALUE FACE VALUE OF DEBT FINANCIAL CRISIS FINANCIAL STATEMENTS FUTURE DEBT GLOBAL DEVELOPMENT FINANCE GOVERNMENT REVENUES GRACE PERIODS HIGH DEBT HIGHLY INDEBTED COUNTRIES HOLDING IMPORTANCE OF LIQUIDITY INCIDENCE OF DEBT INCOME INEQUALITY INDEBTED INDEBTED POOR COUNTRIES INDEBTEDNESS INFLATION INSTITUTIONAL INVESTOR INTEREST RATES INTERNATIONAL BANK INTERNATIONAL DEBT INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL RESERVES LENDING POLICIES LEVEL OF DEBT LEVELS OF DEBT LIQUIDITY LOAN LOCAL CURRENCY LOWER DEBT MACROECONOMIC INSTABILITY MACROECONOMIC STABILITY MACROECONOMIC VARIABLES MARKET INTEREST RATES MATURITY MONETARY FUND MULTILATERAL CREDITORS MULTILATERAL DEBT MULTILATERAL DEBT RELIEF MULTILATERAL LENDERS PAST DEBT PAST DEBTS PATTERNS OF DEBT PAYMENTS IMBALANCES POLICY ENVIRONMENT POLICY RESPONSE PORTFOLIO PRESENT VALUE PRESENT VALUE OF DEBT PRIVATE CREDITORS PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION PROTECTION OF PROPERTY PUBLIC SERVICES REAL EXCHANGE RATE RECIPIENT COUNTRY REPAYMENT REPAYMENT HISTORIES REPAYMENT HISTORY REPAYMENT PERFORMANCE REPAYMENT RATES REPAYMENTS RESERVES RISK OF DEBT RULE OF LAW SECONDARY MARKET SHARE OF DEBT SINGLE DEBT SOLVENCY SOVEREIGN DEBT SOVEREIGN DEBT CRISES SOVEREIGN DEFAULT SOVEREIGN RISK SOVEREIGN RISK RATINGS STOCK OF DEBT SYSTEMIC RISK TOTAL DEBT TYPE OF DEBT VALUE OF DEBT Kraay, Aart Nehru, Vikram When Is External Debt Sustainable? |
| relation |
World Bank |
| description |
The article empirically examines the
determinants of debt distress, defined as periods in which
countries resort to any of three forms of exceptional
finance: significant arrears on external debt, Paris Club
rescheduling, and non-concessional International Monetary
Fund lending. Probit regressions show that three factors
explain a substantial fraction of the cross-country and
time-series variation in the incidence of debt distress: the
debt burden, the quality of policies and institutions, and
shocks. The relative importance of these factors varies with
the level of development. These results are robust to a
variety of alternative specifications, and the core
specifications have substantial out-of-sample predictive
power. The quantitative implications of these results are
examined for the lending strategies of official creditors. |
| format |
Journal Article |
| author |
Kraay, Aart Nehru, Vikram |
| author_facet |
Kraay, Aart Nehru, Vikram |
| author_sort |
Kraay, Aart |
| title |
When Is External Debt Sustainable? |
| title_short |
When Is External Debt Sustainable? |
| title_full |
When Is External Debt Sustainable? |
| title_fullStr |
When Is External Debt Sustainable? |
| title_full_unstemmed |
When Is External Debt Sustainable? |
| title_sort |
when is external debt sustainable? |
| publisher |
Oxford University Press on behalf of the World Bank |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2006/09/17760901/external-debt-sustainable http://hdl.handle.net/10986/16425 |
| _version_ |
1764433438475026432 |