Does structural economic vulnerability matter for public indebtedness in developing countries?

Abstract

Purpose – The purpose of this paper is to examine the effect of structural economic vulnerability of developing countries on their public indebtedness. Design/methodology/approach – The authors perform the analysis by the use of fixed effects technique where the standard errors are corrected by the Driscoll-Kraay (1998) method. The panel covers 96 developing countries over the period 1980-2008. Findings – The results suggest evidence of a “U-shaped” relationship between the structural vulnerability and the total public debt in developing countries. More particularly in low-income countries (LICs), the structural vulnerability appears to be a strong determinant of the build-up of the total public debt. Research limitations/implications – It would be interesting to extend the research to small Island developing states. Indeed, the authors do not include this group of countries because of lack of data, especially on the variable “quality of governance” for almost all countries of this group. Accordingly, the research should be extended to such countries as well as these data are available. Practical implications – The implications of the study is that international institutions, including those of the Bretton Woods should take into account the structural vulnerability of developing countries when designing development policies, especially the ones related to debt sustainability in developing countries and particularly LICs. Social implications – The fact of the international institutions to take into account the structural vulnerability in the design of international development policy, especially those related to debt issues will have major implications on the macroeconomic policy design by these developing countries as well as on poverty reduction. Originality/value – The added value of this paper is to use recent data on structural vulnerability to analyse the effect of the latter on public indebtdeness of developing countries.

A New Systematic Approach to Vulnerability Assessment of Innovation Capability of Construction Enterprises

“…Such assessments were conducted on behalf of a range of different organizations, from small businesses to large enterprises. For example, Gnangnon [25] endowed different weights to various economic growth-indicators to calculate economic vulnerability indices in developing countries. Turner et al [21] proposed a framework of factors and linkages to study the potential effects of the vulnerability of a couple of human-environment systems which was also related to the sensitivity and resilience of the system.…”

“…The research methods used include composite index method, fuzzy method, scenario analysis, and input-output method [14,16,21,25,33,34,[36][37][38][39]. Such assessments were conducted on behalf of a range of different organizations, from small businesses to large enterprises.…”

“…This research was based on an inverse perspective of the relationship between uncertainty and innovation capability. Furthermore, it studied the vulnerability of CEIC and worked to build a system approach to assess the vulnerability of CEIC [11,13,[15][16][17]20,21,[25][26][27]. This new approach aimed to manage and reduce the vulnerability of CEIC and to support the sustainable improvement of CEIC.…”

Türkiye Ekonomisinde Krizler, Ekonomik Kırılganlık ve Yapısal Reformlar

“…"Ekonomik kırılganlık" kavramı ilk olarak 1990 yılında, gelişmekte olan adä ulkelerinin ekonomik zayıflıklarını göstermek amacıyla kullanılmıştır (Gnagnon, 2012 (Kaminsky vd., 2000). Morgan Stanley tarafından, cari açıgın gayri safi yurt içi hâsıla oranı baz alınarak uluslararası sermaye hareketlerine olan duyarlılıgı en fazla olanülkeler, kırılganülkeler olarak adlandırılarak kırılganlık kavramı yüksek cari açık seviyesi ve spekülasyona karşı direnç ile ilişkilendirilmiştir (Karakurt vd., 2015).…”

2008 Fi̇nans Ki̇ri̇zi̇ni̇n Kirilgan Seki̇zli̇ler Üzeri̇ndeki̇ Etki̇si̇: Teori̇k Bi̇r İnceleme

“…Đlave olarak, kısa vadeli, değişken oranlı ve yabancı para cinsinden borca sahip ülkelerin iç ve dış şoklarakarşı kırılgan hale geldikleri belirtilmiştir (IMF, 1998, s. 80-83). Gnangnon (2012:3) ise IMF'nin tersine ekonomik kırılganlığın borçları artırdığı sonucuna ulaşmış ve kırılganlıkla borç arasında U biçimli ilişki elde etmiştir.…”