Abstract
This chapter presents results from our ongoing project for evaluating the commercially available, developing-country creditworthiness indicators. Commercial creditworthiness ratings have long been used for the measurement of corporate risk. More recently, country credit ratings compiled by commercial sources have attempted to estimate country-specific risks, particularly the probability that a country will default on its debt servicing obligations. This default risk is measured using country-specific information about political and economic developments that have been identified in theoretical analyses as influencing the ability and willingness to service external debt obligation.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References and Further Reading
Atbesou, A., ‘International Lending with Moral Hazard and Risk of Repudiation’, Econometrica, July 1991.
Basu, K, ‘The International Debt Problem, Credit Rationing and Loan Pushing: Theory and Experience’, Princeton Studies in International Finance, No. 70, October 1991.
Brewer, T. L. and P. Rivali, ‘Politics and Perceived Country Creditworthiness in International Bombing’, Journal of Money, Credit and Banking, August 1990.
Bulow, Jeremy and Kenneth Rogoff, ‘Sovereign Debit: Is to Forgive to Forget?’ American Economic Review, March 1989.
Buzdarah, M., ‘Optimal Growth and Stages in the Balance of Payments’, Journal of International Economics, 1978.
Calvo, Guillermo, Leonardo Leiderman, and Carmen M. Rainhart, ‘Capital Inflows to Latin America: The Role of External Factors’, IMF Staff Papers, March 1993, 108–51.
Cohen, D, D., ‘Growth and External Debt’, Center for Economic Policy Research Discussion Paper No. 778, May 1993.
Cooper J., ‘Country Creditworthiness: The Use of Cluster Analysis and Discriminant Analysis’, Glasgow Department of Economics Discussion Paper, No. 6, September 1987.
Dooley, M., ‘Debt Relief and Leverages Buy-Outs’, International Economic Review, February 1989.
Dooley, M., Eduardo Fernandez-Areas and Kenneth Kletzer, ‘Is the Debit Crisis History? Recent Private Capital Inflows to Developing Countries’, draft, World Bank, 1995.
Dornbusch, R. and S. Fischer, ‘Exchange Rates and the Current Account’, American Economic Review, 1980.
Eaton, J., ‘Debt Relief and the International Enforcement of Loan Contracts’, Journal of Economic Perspectives, December 1989.
Eaton, J., and M. Gerouritz, ‘Debt with Potential Republiation: Theoretical and Empirical Analysis’, Review of Economic Studies, April 1981.
Eaton, J., Mark Gersoritz, and Joseph Stiglitz, ‘The Pure Theory of Country Risk’, European Economic Review, June 1986.
Feder, A., and L. Uy, ‘The Determinants of International Creditworthiness and their Policy Implications’, Journal of Policy Modelling, October 1984.
Frankel, Jeffrey, ‘Why Haven’t Interest Rates in Latin American and Asian Countries Converged to World Levels? Recent Portfolio Capital Inflows and Stabilization’, mimeo, November 1994.
Freeman, R ‘Optimal International Borrowing with Default’, International Finance Discussion Papers No. 129.
Froot, K, K., ‘Buybacks, Exit Bonds, and the Optimality of Debt and Liquidity Relief,’ International Economic Review, February 1989.
Gibbons, Jean Dickinson (1993) ‘Nonparametric Measures of Association’, Sage University Paper series on Quantitave Applications in the Social Sciences, 07–091, Newbury Park, CA: Sage.
Haque, Nadeem Ul, with Donald Mathieson, Nelson Mark and Mohan Kumar, ‘The Economic content of Indicators of Developing Country Creditworthiness’, IMF Staff Papers, December 1996.
Haque, Nadeem Ul, with Donald Mathieson and Nelson Mark ‘Rating the Raters: An Analysis of Country Creditworthiness’, Finance and Development March 1997.
Haque, Nadeem Ul, with Donald Mathieson and Sunil Sharma ‘Responses to Capital Inflows’, Finance and Development March 1997.
Guidotti, Pablo and Manmohan S. Kumar, Domestic Public Debt of Externally Indebted Developing Countries, IMF Occasional Paper 80, June 1991.
Kharas, H. ‘The Long Run Creditworthiness of Developing Countries: Theory and Practice’, Quarterly Journal of Economics, August 1984.
Kletzer, K., ‘Asymmetries of Information and LDC Borrowing with Sovereign Risk’, Economic Journal, June 1984.
Krugman, Paul, ‘International Debt Strategies in an Uncertain World’, in Gordon Smith and John Cuddington, eds. International Debt and the Developing Countries, World Bank, 1985.
Lee, S. H., ‘Relative Importance of Political Instability and Economic Variables on Perceived Country Creditworthiness’, Journal of International Business Studies, Fourth Quarter, 1993.
McDonald, D., ‘Debt Capacity and Developing country Borrowing: A Survey of the literature’, International Monetary Fund Staff Papers, December 1982.
Powell, James L., ‘Symmeterically Trimmed Least Squares Estimation for Tobit Models’, Econometrica, Vol. 54, November 1986, 1435–60.
Razin, A., and L. Svensson, ‘The Terms of Trade and the Current Account: The Harberger-Laursen-Meltzer Effects’, Journal of Political Economy, 1983.
Sachs, Jeffrey D. and Daniel Cohen, ‘LDC Borrowing with Default Risk’, National Bureau of Economic Research Working Paper 925, July 1982.
Sachs, J., ‘The Current Account and Macroeconomic Adjustment in the 1970s’, Brookings Papers on Economic Activity, 1981.
Editor information
Editors and Affiliations
Copyright information
© 2000 Centre for the Study of African Economies
About this chapter
Cite this chapter
Haque, N.U., Mark, N., Mathieson, D.J. (2000). Rating Africa: The Economic and Political Content of Risk Indicators. In: Collier, P., Pattillo, C. (eds) Investment and Risk in Africa. Studies on the African economies. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-15068-7_2
Download citation
DOI: https://doi.org/10.1007/978-1-349-15068-7_2
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-15070-0
Online ISBN: 978-1-349-15068-7
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)