Domestic debt in Low-Income Countries
AbstractThe potential consequences of the development of domestic debt markets in Low-Income Countries (LICs) are extremely relevant for policy-makers and international financial institutions, especially in light of a scaling-up of public investment in infrastructures. This paper introduces a new dataset on the stock of domestic debt in LICs over the period 1970-2010. With respect to the existing dataset, this one expands the country and time coverage, devotes a careful attention to the problem of the zeros and addresses some inconsistencies between the existing datasets. The descriptive analysis of the evolution of domestic debt in LICs, especially over the last two decades, points out some interesting patterns. The reliance on internal financing has partially offset the reduction in external debt granted by bilateral and multilateral debt relief initiatives. Domestic debt increased at a lower and less volatile pace in countries with better policies and institutions. This pattern is mirrored by a greater capital accumulation, a faster financial development, and a stronger output growth. This descriptive evidence supports the hypothesis that the development of the domestic debt market can bring benefits only in presence of a stable macroeconomic environment, lack of political uncertainty and a developed financial system.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 32 (2012)
Issue (Month): 2 ()
Contact details of provider:
Domestic debt; Public debt; Low-Income Countries;
Find related papers by JEL classification:
- E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- International Monetary Fund, 2010. "A Historical Public Debt Database," IMF Working Papers 10/245, International Monetary Fund.
- S. M. Ali Abbas & Jakob Christensen, 2007.
"The Role of Domestic Debt Markets in Economic Growth: An Empirical Investigation for Low-Income Countries and Emerging Markets,"
IMF Working Papers
07/127, International Monetary Fund.
- S M Ali Abbas & Jakob E Christensen, 2010. "The Role of Domestic Debt Markets in Economic Growth: An Empirical Investigation for Low-Income Countries and Emerging Markets," IMF Staff Papers, Palgrave Macmillan, vol. 57(1), pages 209-255, April.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2011.
"From Financial Crash to Debt Crisis,"
American Economic Review,
American Economic Association, vol. 101(5), pages 1676-1706, August.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "This Time Is Different: Eight Centuries of Financial Folly," Economics Books, Princeton University Press, edition 1, volume 1, number 8973.
- Kevin Cowan & Eduardo Levy Yeyati & Ugo Panizza & Federico Sturzenegger, 2006.
"Sovereign Debt In The Americas: New Data and Stylized Facts,"
Business School Working Papers
2006-09, Universidad Torcuato Di Tella.
- Kevin Cowan & Eduardo Levy Yeyati & Ugo Panizza & Federico Sturzenegger, 2006. "Sovereign Debt in the Americas: New Data and Stylized Facts," Research Department Publications 4480, Inter-American Development Bank, Research Department.
- Kevin Cowan & Eduardo Levy-Yeyati & Ugo Panizza & Federico Sturzenegger, 2006. "Sovereign Debt in the Americas: New Data and Stylized Facts," Working Papers Central Bank of Chile 371, Central Bank of Chile.
- Ludvig SÃ¶derling & Hanan Morsy & Martin Petri & Martin Hommes & Manal Fouad & Wojciech Maliszewski, 2007. "Public Debt and Fiscal Vulnerability in the Middle East," IMF Working Papers 07/12, International Monetary Fund.
- Joshua Greene & Delano Villanueva, 1991. "Private Investment in Developing Countries: An Empirical Analysis," IMF Staff Papers, Palgrave Macmillan, vol. 38(1), pages 33-58, March.
- Aiyar, Shekhar & Berg, Andrew & Hussain, Mumtaz, 2008.
"The Macroeconomic Management of Increased Aid: Policy Lessons from Recent Experience,"
Working Paper Series
RP2008/79, World Institute for Development Economic Research (UNU-WIDER).
- Mumtaz Hussain & Andrew Berg & Shekhar Aiyar, 2009. "The Macroeconomic Management of Increased Aid: Policy Lessons from Recent Experience," Review of Development Economics, Wiley Blackwell, vol. 13(s1), pages 491-509, 08.
- David Hauner, 2006. "Fiscal Policy and Financial Development," IMF Working Papers 06/26, International Monetary Fund.
- Bua, Giovanna & Pradelli, Juan & Presbitero, Andrea F., 2014.
"Domestic public debt in low-income countries : trends and structure,"
Policy Research Working Paper Series
6777, The World Bank.
- Giovanna Bua & Juan Pradelli & Andrea Filippo Presbitero, 2013. "Domestic public debt in low-income countries: trends and structure," Mo.Fi.R. Working Papers 85, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley).
If references are entirely missing, you can add them using this form.