Determinants of developing country debt: the revolving door of debt rescheduling through the Paris Club and export credits

Blackmon, Pamela

doi:10.1080/01436597.2014.946260

Cited by 12 publications

(5 citation statements)

References 20 publications

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“…He added that developing countries are heterogeneous in terms of colonial heritage, creditworthiness, and geopolitics is attributed to high levels of indebtedness. Blackmon (2014) examined the causes of the high percentages of developing countries' debt owed to governmental export credit agencies. He revealed that the debt owed to creditor institutions becomes a major cause in the long term debt problems of developing countries.…”

Section: Review Of Related Literaturementioning

confidence: 99%

Re-visiting the Drivers for Increasing External Debt

Adamu

2019

JCIT

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This paper investigates the drives for increasing external debt in an open economy Nigeria over the period 1970 to 2017 using general to specific approach (GETS) approach (Hendry, 1995). The Johansen cointegration test confirms that variables have long run relationship. The empirical results for both long run and short run estimates indicate oil price, domestic savings and fiscal deficits play a significant role in increasing external debt in Nigeria. The study also found evidence that the dummy variables for exchange rate and debt relief also accelerate the growth of external. This finding indicates that, after the multilateral debt relief between 2005 and 2006, fresh loans are still coming to Nigeria. To this end, Nigeria should focus on investment in real sectors especially in agriculture and manufacturing to increase export performance. This would enable the country to generate adequate foreign earnings and stimulate domestic savings, and reduce reliance on oil revenue.

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Section: Review Of Related Literaturementioning

confidence: 99%

Re-visiting the Drivers for Increasing External Debt

Adamu

2019

JCIT

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“…Barkbu et al (2012) provide a 30-year overview of the multilateral response to financial crises, arguing that emergency lending and debt restructurings have tended to function as substitutes rather than complements. Blackmon (2014Blackmon ( , 2017 shifted the focus of the analysis, emphasizing the fact that close to 80% of the bilateral obligations restructured through the Paris Club were owed to Export Credit Agencies, turning it into a crucial component of the trade finance architecture.…”

Section: Introductionmentioning

confidence: 99%

Official debt restructurings and development

Gong¹,

Díaz-Cassou

Erce³

2018

World Development

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Despite the frequency of official debt restructurings, little systematic evidence has been produced on their characteristics and implications. Using a dataset covering more than 400 Paris Club agreements, this paper fills that gap. It provides a comprehensive description of the evolving characteristics of these operations and studies their impact on debtors. The progressive introduction of new terms of treatment gradually turned the Paris Club from an institution primarily concerned with preserving creditors' claims into an instrument to foster development in the world's poorer nations, among other objectives. Our study finds that more generous restructuring conditions involving nominal relief are associated with an acceleration of per capita GDP growth, a reduction of poverty and inequality, and an increase in public health budgets. We also find that countries receiving nominal relief tend to receive lower aid flows subsequently, the opposite being the case for countries receiving high reductions in the net present value of their obligations, but no nominal haircuts.

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“…Outside the scope of intercompany debt are debt and interest payments collected by Export Credit Agencies [ 103 – 106 ] that countries use to pay for imports of goods. According to Eurodad these debts are substantial: almost 80 percent of debts owed by developing countries to four European stem from export credits ([ 107 ], p. 3; [ 108 , 109 ]). Also, a part of government debt is payment for large (infrastructural) projects contracted out to TNCs such as Halliburton and Bechtel [ 110 – 112 ].…”

Section: Methodsmentioning

confidence: 99%

Net profit flow per country from 1980 to 2009: The long-term effects of foreign direct investment

Akkermans

2017

PLoS ONE

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Aim of the paperThe paper aims at describing and explaining net profit flows per country for the period 1980-2009. Net profit flows result from Foreign Direct Investment (FDI) stock and profit repatriation: inward stock creating a profit outflow and outward FDI stock a profit inflow. Profit flows, especially 'normal' ones are not commonly researched. Theoretical backgroundAccording to world-system theory, countries are part of a system characterised by a core, semi-periphery and periphery, as shown by network analyses of trade relations. Network analyses based on ownership relations of TransNational Corporations (TNCs) show that the top 50 firms that control about 40% of the world economy are almost exclusively located in core countries. So, we may expect a hierarchy in net profit flows with core countries on top and the periphery at the bottom. FDI outflows from the core countries especially rose in the 1990s, so we may expect that the difference has grown in time.

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Determinants of developing country debt: the revolving door of debt rescheduling through the Paris Club and export credits

Cited by 12 publications

References 20 publications

Re-visiting the Drivers for Increasing External Debt

Re-visiting the Drivers for Increasing External Debt

Official debt restructurings and development

Net profit flow per country from 1980 to 2009: The long-term effects of foreign direct investment

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