Country Risk in the Age of Globalization: Cycles and Dynamics. A Review of Literature

  • Michel Henry BouchetEmail author
  • Charles A. Fishkin
  • Amaury Goguel


The concept of “Country Risk” has evolved over time. The term first started to appear after the 1973 oil shock and during the Latin American debt crisis in the early 1980s. Gradually, it became clear that Country Risk is not an issue associated with only emerging market countries. Following the Global Financial Crisis, a number of European countries found themselves on the brink of debt defaults. The ensuing large bailout programs were a wakeup call for those who maintained that Country Risk applied only to African or Latin American economies. The treatment of Country Risk in the academic literature has lagged behind country crises. Initially, the academic analysis focused on debt and banking crises. It then expanded after the exchange rate and balance of payments crises of the late 1970s. Since the late 1990s, the notion of Country Risk has further expanded to encompass a country’s institutional and governance deficiencies.


Risk Globalization Cycles Volatility Crises 


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© The Author(s) 2018

Authors and Affiliations

  • Michel Henry Bouchet
    • 1
    Email author
  • Charles A. Fishkin
    • 2
  • Amaury Goguel
    • 3
  1. 1.Skema Business SchoolParis-Sophia Antipolis-Suzhou-RaleighFrance
  2. 2.ChappaquaUSA
  3. 3.Skema Business SchoolParis-Sophia Antipolis-Suzhou-RaleighFrance

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