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A study about LDCs' debt problem

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  • Rahnama-Moghadam, Mashaalah

Abstract

In this study I have examined the relationships between economic ratios of the less-developed debtor countries and the probability of debt reschedulings by them. I have taken 44 debtor countries which are listed on pages 53 and 54;A probit probability technique is used to study the relationships. Seven economic ratios are calculated and used as independent variables. Data are collected from different issues of World Development Reports and World Debt Tables, both published by the World Bank;The results are shown in Tables 4.1 (page 64), 4.2 (page 67), 4.3 (page 71), 4.4 (page 75), and 4.5 (page 83). In general, the results are mixed and we cannot come up with any strong inference about the relationship between the creditworthiness of a debtor country and its economic-ratio profile.

Suggested Citation

  • Rahnama-Moghadam, Mashaalah, 1988. "A study about LDCs' debt problem," ISU General Staff Papers 198801010800009797, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:198801010800009797
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