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An Illustration of the Impact of Economic and Political Risk Using the Country Credit Rating Model for Japan, Malaysia and Russia

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Listed:
  • Carl B.McGowan, Jr.

    (Norfolk State University, USA)

Abstract

In this paper, we demonstrate the use of the country credit rating model in Japan, a developed economy, Malaysia, an upper middle-income economy, and Russia, a lower middle-income economy. We find that the country credit rating model tracks the gradual and minor deterioration of the economic condition of Japan, the financial crisis that occurred in Malaysia in 1997–1998, and the shock that hit the Russian economy in 1998 when the government defaulted on bonds, and the subsequent recoveries in both Malaysia and Russia.

Suggested Citation

  • Carl B.McGowan, Jr., 2008. "An Illustration of the Impact of Economic and Political Risk Using the Country Credit Rating Model for Japan, Malaysia and Russia," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 6(2), pages 143-156.
    • Handle: RePEc:mgt:youmgt:v:6:y:2008:i:2:p:143-156
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    corporate finance; foreign direct investment; economic growth; government policy; political economy;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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