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A further examination of sovereign domestic and external debt defaults

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  • Ghulam, Yaseen

Abstract

Theoretical and empirical studies have generally ignored interactions between political, economic and financial factors, in determining or predicting external sovereign debt defaults across geographic clusters. In addition, investigating and predicting defaults on domestic debt is relatively uncommon. This study looks into both domestic and external debt defaults of sovereign countries from diverse regions by interacting political, financial and economic factors and draws broad conclusions that domestic and sovereign debt defaults share some common features, although significant heterogeneities also exist. The findings of this study have significant policy implications in predicting and managing sovereign domestic and external debt defaults.

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  • Ghulam, Yaseen, 2025. "A further examination of sovereign domestic and external debt defaults," The North American Journal of Economics and Finance, Elsevier, vol. 76(C).
    • Handle: RePEc:eee:ecofin:v:76:y:2025:i:c:s106294082400247x
    DOI: 10.1016/j.najef.2024.102322
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    More about this item

    Keywords

    Sovereign debt; Default risk; Political factors; Volatility; Domestic public debt;
    All these keywords.

    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G01 - Financial Economics - - General - - - Financial Crises
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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