Publication Type
Working Paper
Version
publishedVersion
Publication Date
2001
Abstract
The external debt position of a country often lies at the heart of her financial crisis. While it is well-known that indebtedness and in particular a surge in short-term debts often precipitate a debt crisis that is often made worse by runs on a country’s foreign exchange, the reasons why a country takes a particular debt position is rarely formally explained. This paper investigates the long-term determinants of international indebtedness, the time-rates of change of indebtedness, and a nation’s short- to long term debt ratio. The data set used is the World Data CD-ROM. Six potential explanatory variables are: size, per-cap GNP, growth rate, net-exports, change in reserves, and money supply. Cross-sectional regressions are run for each year from 1984 to 1993 to establish a pattern of answers to the indebtedness problem.
Discipline
Economics | Finance
Research Areas
Macroeconomics
First Page
1
Last Page
21
Citation
LEUNG, Hing-Man.
An Empirical Investigation into Long- and Short-Term Indebtedness. (2001). 1-21.
Available at: https://ink.library.smu.edu.sg/soe_research/701
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.