Home About us Contact
|
Home About us Contact | ||
|
|
||
Debt Burden (debt + burden)
Selected AbstractsCentral America's Foreign Debt Burden and the HIPC InitiativeBULLETIN OF LATIN AMERICAN RESEARCH, Issue 1 2001Gerardo Esquivel This paper reviews the foreign debt burden in Central America with special emphasis on Honduras and Nicaragua. These countries have a large debt overhang and they have lagged behind the rest of the region in terms of economic growth. Our work suggests that Honduras and Nicaragua require alleviation of their foreign debt as a prerequisite to achieve sustained economic growth. The paper also reviews the initiative aimed at reducing the debt burden of the highly indebted poor countries (the HIPC Initiative) and evaluates alternative scenarios of debt reduction for both Honduras and Nicaragua. It ends with a critical assessment of the implications of the fiscal and openness criteria established in the HIPC Initiative. [source] COALITION GOVERNMENTS AND SOVEREIGN DEBT CRISESECONOMICS & POLITICS, Issue 2 2009SEBASTIAN M. SAIEGH This article examines the domestic politics of sovereign debt crises. I focus on two alternative mechanisms that aggregate the preferences of domestic actors over debt repayment: single-party versus multiparty coalition governments. I uncover a very strong empirical regularity using cross-national data from 48 developing countries between 1971 and 1997. Countries that are governed by a coalition of parties are less likely to reschedule their debts than those under single-party governments. The effect of multiparty coalitions on sovereign defaults is quantitatively large and roughly of the same order of magnitude as liquidity factors such as debt burden and debt service. These results are robust to numerous specifications and samples. [source] Financial Restructuring in Fresh-Start Chapter 11 ReorganizationsFINANCIAL MANAGEMENT, Issue 4 2009Randall A. Heron We find that firms substantially reduce their debt burden in "fresh-start" Chapter 11 reorganizations, yet they emerge with higher debt ratios than what is typical in their respective industries. While cross-sectional regressions reveal that post-reorganization debt ratios are more in line with the predictions of the static trade-off theory, they also reveal that pre-reorganization debt ratios affect post-reorganization debt ratios. Collectively, these results suggest that impediments in Chapter 11 prevent firms from completely resetting their capital structures. We also find that firms that reported positive operating income leading up to Chapter 11 emerge faster, suggesting that it is quicker to remedy strictly financial distress than economic distress. [source] Optimal Policy for Financial Market Liberalizations: Decentralization and Capital Flow ReversalsGERMAN ECONOMIC REVIEW, Issue 1 2000Theo S. Eicher Financial market liberalizations are an integral part of economic development. While initial booms in investment and output are commonly seen as signs of successful deregulation, they often reverse at a later stage as international capital flows turn negative and economic growth slows markedly. Such reversals of fortunes have commonly been attributed to incorrect policies that supposedly followed the initial, appropriate measures. It is unclear, however, if capital flow reversals are actually the result of policy reversals, or if they occur as part of the normal transition when financial liberalization is accompanied by a single suboptimal policy. The later hypothesis has not been explored in the theoretical literature We construct a general equilibrium growth model of a small open economy, in which capital flow reversals are the result of a single, suboptimal policy imposed at the beginning of the financial liberalization. We show how improper taxation of foreign borrowing initially leads to strong growth fuelled by an investment boom and foreign borrowing. Still along the transition, however, the model predicts that capital flows must reverse endogenously at a later stage, as the debt burden rises and the country-specific risk premium increases. Our data on the Latin American and East Asian countries provide strong support for our hypothesis. [source] The International Financial Architecture: Old Issues and New InitiativesINTERNATIONAL FINANCE, Issue 1 2002Peter B. Kenen Reform of the international financial architecture has made progress but has not dealt decisively with the need to involve private sector creditors in resolving debt-related crises. It has relied unduly on voluntary approaches combined with large-scale official financing. A comprehensive approach requires the use of temporary standstills to protect debtors against litigation. These can help to resolve ,liquidity' crises as well as ,solvency' crises. Proposals by Krueger (2001, 2002) provide a way to resolve the problem of a sovereign debtor with an unsustainable debt burden but offer no solution to problems involving private sector debt or to liquidity crises. They would also require an amendment to the Articles of Agreement of the International Monetary Fund, which could prove difficult. This paper proposes a less radical approach , adding rollover clauses and collective-action clauses to sovereign and private debt contracts, backed by strict limits on IMF financing. It resembles, but goes further than, the contractual approach favoured by the US Treasury. [source] Credit demand in Mozambican manufacturingJOURNAL OF INTERNATIONAL DEVELOPMENT, Issue 1 2010Bruce Byiers Abstract This paper uses two industrial firm surveys to identify the key determinants of credit demand in Mozambican manufacturing. We construct five different measures of being credit constrained and estimate desired debt demand. Besides firm size and ownership structure, we find evidence that general manager education and business association membership are associated with whether a firm is credit constrained or not. Using our preferred measure of credit constraint suggests that around 43 per cent of the firms surveyed are constrained, and these enterprises would almost triple their debt burden if borrowing constraints were relaxed. Copyright © 2009 John Wiley & Sons, Ltd. [source] Central America's Foreign Debt Burden and the HIPC InitiativeBULLETIN OF LATIN AMERICAN RESEARCH, Issue 1 2001Gerardo Esquivel This paper reviews the foreign debt burden in Central America with special emphasis on Honduras and Nicaragua. These countries have a large debt overhang and they have lagged behind the rest of the region in terms of economic growth. Our work suggests that Honduras and Nicaragua require alleviation of their foreign debt as a prerequisite to achieve sustained economic growth. The paper also reviews the initiative aimed at reducing the debt burden of the highly indebted poor countries (the HIPC Initiative) and evaluates alternative scenarios of debt reduction for both Honduras and Nicaragua. It ends with a critical assessment of the implications of the fiscal and openness criteria established in the HIPC Initiative. [source] Debt, democratization, and development in Latin America: How policy can affect global warmingJOURNAL OF POLICY ANALYSIS AND MANAGEMENT, Issue 1 2008René W. Aubourg The environmental Kuznets curve (EKC) hypothesis conjectures a nonlinear relationship between pollution and economic growth, such that pollution per capita initially increases as countries economically develop, but then reaches a maximum point before ultimately declining. Much of the EKC literature has focused on testing this basic hypothesis and, in studies that find evidence of an EKC, estimating the "turning point" level of development at which the per capita pollution-growth relationship changes sign. This approach has not emphasized the policy relevance of specification issues or the potential role of policy variables. This research explores a modified EKC specification which conditions the pollution-growth relationship on a country's level of debt and degree of democratization. These variables turn out to be significant, implying that different political and economic contexts can shift EKCs and their turning points. These findings suggest that policies to relieve debt burdens and institute political reform, in addition to their usual justifications, also could be used as a strategy to reduce carbon emissions from developing countries. © 2008 by the Association for Public Policy Analysis and Management. [source] | |||||||||||||