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Volume 55, Issue 3 -4


Why heavily indebted poor countries have failed to pay back their debt? An empirical investigation

Tiruneh, Menbere Workie

Year: 2005   Volume: 55   Issue: 3 -4   Pages: 124-140

Abstract: This paper, in using cross-section pooled logit, probit, and fixed-effects logit models, empirically explores the main factors affecting the rescheduling of contractual debt-service payments by heavily indebted poor countries (HICPs) in the late 1980s and the 1990s. The results seem to suggest that HIPCs past external debt, per-capita income level, GDP growth rate, trade openness, foreign-currency reserves, and capital inflows are core factors affecting debt servicing

JEL classification: C13, C31, C33

Keywords: debt crisis; debt rescheduling; logit model; fixed effects; heavily indebted poor countries (HIPC)

RePEc: http://ideas.repec.org/a/fau/fauart/v55y2005i3-4p124-140.html

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