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Debt Relief under the HIPC Initiative: Why Some Countries Complete the Programme Faster Than Others


  • William Akoto


The Highly Indebted Poor Countries (HIPC) initiative has been one of the primary avenues for delivering debt relief to developing countries in the past decade. However, the performance of countries in the HIPC programme has been vastly heterogeneous with some countries reaching completion point much faster than others. This paper uses Cox-Proportional hazard models to explain the wide disparity in completion times by examining how the economic, social and governance environments within a country affect the speed of completion. The findings suggest that better economic management, increased trade, more effective government machinery, and a more stable political environment among others are all significant in speeding up completion times.

Suggested Citation

  • William Akoto, 2013. "Debt Relief under the HIPC Initiative: Why Some Countries Complete the Programme Faster Than Others," Working Papers 346, Economic Research Southern Africa.
  • Handle: RePEc:rza:wpaper:346

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    More about this item


    HIPC; Hazard Models; Survival Analysis; Aid; Debt relief; Development;

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • G01 - Financial Economics - - General - - - Financial Crises

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