What determines external debt tipping points?
AbstractThis paper is interested in the nexus between external debt and export competiveness. Specifically, while we find that once external debt exceeds a certain threshold it is negatively associated with export growth, we are interested in determining whether the tipping points vary based on country characteristics. We test various hypotheses, including extent of exchange rate flexibility, size of foreign exchange reserve holdings, bond market development, degree of banking sector concentration and history of financial crises.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Macroeconomics.
Volume (Year): 39 (2014)
Issue (Month): PA ()
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Web page: http://www.elsevier.com/locate/inca/622617
Exchange rate regimes; Debt threshold; External debt; Exports; Financial development; Reserves;
Find related papers by JEL classification:
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- F34 - International Economics - - International Finance - - - International Lending and Debt Problems
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
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