Sovereign default and the structure of private external debt
Sovereign default and the structure of private external debt
Author(s): Joanna Siwińska-Gorzelak, Michał BrzozowskiSubject(s): Economic history, Economic policy, Post-War period (1950 - 1989), Transformation Period (1990 - 2010), Present Times (2010 - today), Financial Markets
Published by: Wydawnictwa Uniwersytetu Warszawskiego
Keywords: Private external debt; sovereign default;
Summary/Abstract: While the literature on determinants of sovereign default is voluminous, the links between private indebtedness and the probability of public bankruptcy have not been studied extensively. In this paper we aim to fill this gap and to shed more light on the influence of the size and structure of private debt on sovereign default probability. We focus on developing and emerging market economies over the years 1970–2012. The main conclusions are that both the size and the structure of private borrowings affect the probability of a sovereign default.
Journal: Central European Economic Journal
- Issue Year: 5/2018
- Issue No: 52
- Page Range: 1-9
- Page Count: 9
- Language: English