Foreign debt, global liquidity, and fiscal sustainability
Danbee Park and
Taeyoon Sung ()
Japan and the World Economy, 2020, vol. 54, issue C
We empirically investigate fiscal sustainability by comparing countries in the different economic groups with a dataset covering 180 countries during the period from 1980 to 2015. As the OECD countries have higher international debt ratio than other countries, they have higher probability to be exposed to global risk factors. Non-OECD countries turn out to be more fiscally solvent than OECD countries due to their limited access to international financial market. However, we also find that better access to international liquidity increases fiscal sustainability within the sample of OECD countries, while it does not improve the fiscal solvency in case of non-OECD countries.
Keywords: Foreign debt; Liquidity; Public debt; Fiscal balance (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:japwor:v:54:y:2020:i:c:s0922142519300611
Access Statistics for this article
Japan and the World Economy is currently edited by Robert Dekle and Yasushi Hamao
More articles in Japan and the World Economy from Elsevier
Bibliographic data for series maintained by Haili He ().