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Sovereign default and the structure of private external debt

Author

Listed:
  • Siwińska-Gorzelak Joanna
  • Brzozowski Michał

    (Faculty of Economic Sciences, University of Warsaw, Warsaw, Poland)

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.

Suggested Citation

  • Siwińska-Gorzelak Joanna & Brzozowski Michał, 2018. "Sovereign default and the structure of private external debt," Central European Economic Journal, Sciendo, vol. 5(52), pages 1-9, January.
    • Handle: RePEc:vrs:ceuecj:v:5:y:2018:i:52:p:1-9:n:1
    DOI: 10.1515/ceej-2018-0003
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    References listed on IDEAS

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    More about this item

    Keywords

    Private external debt; sovereign default;

    JEL classification:

    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems

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