The Politics of External Debt in Developing Countries

Emilio Colombo
Authors registered in the RePEc Author Service: Enrico Longoni

No 176, Working Papers from University of Milano-Bicocca, Department of Economics

Abstract: We analyse the determinants of long term external debt for a large sample of developing countries. We ¯nd that, in addition to the stan- dard economic variables, institutional and socio-political variables are a key factor in explaining the level of external debt. Overall the re- sults point to an interpretation based on the presence of binding credit constraints. Such constraints are relaxed in the presence of high qual- ity of institutions and low political risk, while they are tightened when socio-political risk is higher.

JEL-codes: F34 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2009-12, Revised 2009-12
New Economics Papers: this item is included in nep-dev
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:mib:wpaper:176

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