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International Debts Flows

Author

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  • Ly Dai Hung

    (VNU International School, Vietnam National University, Hanoi, Vietnam2Vietnam Institute of Economics (VIE), Hanoi, Vietnam3Thang Long Institute of Mathematics and Applied Sciences (TIMAS), Office 1116, A Building, 1B Lieu Giai, Ba Dinh, Hanoi, Vietnam)

  • Bui Thi Hai Anh

    (Vinaconex Building, Trung Van, Nam Tu Liem, Hanoi, Vietnam)

  • Vo Tri Thanh

    (Institute for Brand and Competitiveness Strategy, C Building, La Thanh Guest House, 218 Doi Can, Ba Dinh, Hanoi, Vietnam)

Abstract

This paper analyzes the dependence pattern of net debts inflows on the sovereign debts rating and the fiscal balance, on accounting for the productivity growth rate. The cross-section evidence on a sample of 149 economies for the period from 1990 to 2019 uncovers that a higher sovereign debts rating, a lower fiscal balance or a higher productivity growth is associated with more net debts inflows. Thus, the debts flows are underlined by the store of wealth accumulation across economies. Moreover, there exists a nonlinearity on the pattern of debts flows, for which the fiscal balance determines the impact of sovereign debts rating on the net debts inflows. The results are robust for panel data regression as well as case study of three economies including Japan, Thailand and Vietnam.

Suggested Citation

  • Ly Dai Hung & Bui Thi Hai Anh & Vo Tri Thanh, 2022. "International Debts Flows," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 13(02), pages 1-22, June.
    • Handle: RePEc:wsi:jicepx:v:13:y:2022:i:02:n:s1793993322500090
    DOI: 10.1142/S1793993322500090
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    More about this item

    Keywords

    Net debts inflows; safe assets; productivity growth; international capital flows;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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