What determines external debt tipping points?

Alice Ouyang () and Ramkishen Rajan

Journal of Macroeconomics, 2014, vol. 39, issue PA, 215-225

Abstract: This paper is interested in the nexus between external debt and export competiveness. Specifically, while we find that once external debt exceeds a certain threshold it is negatively associated with export growth, we are interested in determining whether the tipping points vary based on country characteristics. We test various hypotheses, including extent of exchange rate flexibility, size of foreign exchange reserve holdings, bond market development, degree of banking sector concentration and history of financial crises.

Keywords: Exchange rate regimes; Debt threshold; External debt; Exports; Financial development; Reserves (search for similar items in EconPapers)
JEL-codes: F21 F34 F43 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:39:y:2014:i:pa:p:215-225

DOI: 10.1016/j.jmacro.2013.11.001

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