publication . Article . Other literature type . 1987

Country risk and political instability

Gerald Nickelsburg; Joel-Tomas Citron;
  • Published: 01 Apr 1987 Journal: Journal of Development Economics, volume 25, pages 385-392 (issn: 0304-3878, Copyright policy)
  • Publisher: Elsevier BV
Abstract A model of country risk for foreign borrowing is proposed and estimated which incorporates a political instability variable. The model predicts historically high probabilities of default for most of the actual default dates for six countries. This is suggestive of how to understand the phenomenon of foreign debt default.
free text keywords: Economics and Econometrics, Development, Political instability, Monetary economics, Country risk, Phenomenon, External debt, Economics, International economics
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