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Institutional Quality and Debt Relief: A Political Economy Approach


  • William Akoto


Recent shifts in the global debt relief architecture has meant that countries with superior institutions are often rewarded with increasinf aid and debt relied, an incentive for debtor countries to strategically improve their institutions prior to seeking debt relief. This paper contributes to the literature by developing and empirically testing a political economy model of the possible impact of this shift on the motivations of politicians and bureaucrats in debtor countries. The findings suggest that debtor countries have quickloy adapted to the shift by strategically improving in key areas of institutional governance prior to applying for dect relief.

Suggested Citation

  • William Akoto, 2013. "Institutional Quality and Debt Relief: A Political Economy Approach," Working Papers 340, Economic Research Southern Africa.
  • Handle: RePEc:rza:wpaper:340

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    More about this item


    Debt relief; Aid; Institutional Quality; HIPC; Development;

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • H6 - Public Economics - - National Budget, Deficit, and Debt

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