Skip to main content
SpringerLink
Log in

A politico-economic view of the debt-servicing capacity of emerging economies

  • Debt Sustainability
  • Published:
Intereconomics

Abstract

While there are a multitude of approaches to analysing a country's debt-servicing capacity, these display a number of weaknesses, notably as regards the integration of political and economic risk factors. This article presents a stylised politicoeconomic model that highlights a number of determinants which have so far been neglected in the literature.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  1. International Monetary Fund: World Economic Outlook, May 1998, p. 196.

  2. See The World Bank: Global Development Finance 1998, Washington D.C. 1998, pp. 54–57.

  3. Donogh C. McDonald: Debt Capacity and Developing Country Borrowing: A Survey of the Literature, IMF Staff Papers 29, 1982, pp. 603–646.

  4. M. Klein: Die Bewertung von Länderrisiken—Ein makroökonomischer Ansatz, Universität Bonn, Habil. 1992, ch. 6.3.

  5. Anthony Saunders: The Determinants of Country Risk—A Selective Survey of the Literature, Studies in Banking and Finance, 3, 1986, pp. 1–38.

  6. See A. Bäcker: Politische und ökonomische Länderrisiken—eine theoretische und empirische Analyse, Overseas Publishers, Berlin 1998, ch. 4 and 5.

    Google Scholar 

  7. Reinhart Schmidt: Early Warning of Debt Rescheduling, in: Journal of Banking and Finance, No. 8, 1984, pp. 357–370.

  8. A. Bäcker, op. cit., Politische und ökonomische Länderrisiken—eine theoretische und empirische Analyse, Overseas Publishers, Berlin 1998, ch. 2.

  9. Sabine Johannsen, Hans-Hermann Steinbeck: Länderrisikobeurteilung in der NordLB, in: Sparkasse, 112, 10, 1995, pp. 482–486.

  10. Nadeem UI Haque, Donald Mathieson, Nelson Park: Die Beurteilung der Kreditwürdigkeit von Staaten auf dem Prüfstand, in: Finanzierung und Entwicklung, March 1997.

  11. W. Nordhaus: The political business cycle, in: Review of Economic Studies, Vol. 42, 1975, pp. 169–190; Inge Stalder: Staatsverschuldung aus Sicht der Neuen Politischen Ökonomie, in: K.-D. Grüske (ed.): Forum Finanzwissenschaft, Vol..2, Munich 1992.

  12. Stephan Haggard, Robert Kaufmann: The Politics of Stabilization and Adjustment, in: J. D. Sachs (ed.): Developing Country Debt and Economic Performance, Vol. 1: The International Financial System, Chicago and London 1989, p. 221.

  13. S. Haggard, R. Kaufmann, op. cit., The Politics of Stabilization and Adjustment, in: J. D. Sachs (ed.): Developing Country Debt and Economic Performance, Vol. 1: The International Financial System, Chicago and London 1989, p. 248.

  14. Peter Nunnenkamp, Hartmut Picht: Wilful Default by Developing Countries in the 1980s: A Cross-Country Analysis of Major Determinants, in:Weltwirtschaftliches Archiv, 1989, pp. 696–697.

  15. A. Bäcker, op. cit.,, ch. 6.

    Google Scholar 

  16. Karin Lissakers: Banks, Borrowers and the Establishment, A Revisionist Account of the International Debt Crisis, New York 1991, pp. 199–200.

  17. Ibid. Karin Lissakers: Banks, Borrowers and the Establishment, A Revisionist Account of the International Debt Crisis, New York 1991,

  18. For a more explicit model see A. Bäcker, op. cit,, ch. 6, and for the modelling technique Robert K. von Weizsäcker: Bevölkerungs-entwicklung, soziale Sicherung und Staatsfinanzen: Politökonomische Aspekte der Rentenfinanzierung, Diskussionspapier Nr. A-226, Universität Bonn, Institut für Wirtschaftswissenschaften, Finanzwissenschaftliche Abteilung, April 1989.

    Google Scholar 

  19. A. Bäcker, op. cit.,, ch. 7.

    Google Scholar 

  20. Donogh C. McDonald, op. cit. Debt Capacity and Developing Country Borrowing: A Survey of the Literature, IMF Staff Papers 29, 1982, and Reinhart Schmidt, op. cit. Early Warning of Debt Rescheduling, in: Journal of Banking and Finance, No. 8, 1984, pp. 357–370.

  21. A. Bäcker, op. cit.,, ch. 7.

    Google Scholar 

  22. Source: time series 79a.d in the IMF International Financial Statistics.

  23. Data sources: The World Bank (World Debt Tables) and International Monetary Fund (International Financial Statistics); countries: see footnote 21.

Download references

Author information

Authors and Affiliations

  1. Frankfurt am Main, Germany

    Arno Bäcker

Authors
  1. Arno Bäcker
    View author publications

    You can also search for this author in PubMed Google Scholar

Additional information

The author would like to thank Frank Bohn, Fiona Bottomley, Gunnar Brennscheidt, Martin Klein and Sebastian Schich for helpful comments or fruitful discussions, resprectlvely. The paper is excluslvely of a private nature. It is partly based on the author's dissertation at Martin-Lulher-Universität Halle-Wittenberg.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Bäcker, A. A politico-economic view of the debt-servicing capacity of emerging economies. Intereconomics 33, 230–237 (1998). https://doi.org/10.1007/BF02929518

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF02929518

Keywords

Search

Navigation