One Reason Countries Pay Their Debts: Renegotiation And International Trade

Topics:
Global Strategy
Tags:
Federal Reserve Bank Of New York,
Finance,
Financial Accounting,
Trade
Source:
Federal Reserve Bank of New York

FREE Registration is required

Overview: This article estimates the effect of sovereign debt renegotiation on international trade. Sovereign default may be associated with a subsequent decline in international trade either because creditors want to deter default by debtors, or because trade finance dries up after default. To estimate the effect, the article uses an empirical gravity model of bilateral trade and a large panel data set covering fifty years and more than 200 trading partners. The model controls for a host of factors that influence bilateral trade flows, including the incidence of International Monetary Fund programs. The decline in bilateral trade is approximately 8 percent a year and persists for about fifteen years.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 219KB | Date: Jan 2002 | Pages: 37

Top results from Global Strategy

Webcast Search Applications: The Future of Enterprise Search
White Paper Global Strategic Management
White Paper Foreign Market Entry Modes
White Paper Economic & Business Focus: Global Expansion Strategies
White Paper Going Global

» View all Global Strategy listings

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement

Returning users: Log In Here!

Already registered on BNET, TechRepublic, or ZDNet? Simply log in.

Free Membership: Sign Up Now!

Sign up for a free membership today and get instant and unlimited access to one of the largest databases of white papers, webcasts, and casestudies anywhere. Your FREE membership allows you to:

  • Download an unlimited amount of content, including classic and current white papers, case studies, webcasts and more
  • Track content on your chosen topics of interest
  • Receive targeted email alerts when your favorite content is added
  • Save content for future reading
  • Receive our member newsletter

When you register to access this directory, you become a member of BNET. In addition, you allow us to share your information with companies that produce products or services featured in the library--so that such companies may contact you with information and offers regarding their products and services. This enables us to keep the library a free service. As a directory registrant, you will receive a complimentary subscription to the BNET member newsletter, The BNET Report. You can unsubscribe from this newsletter at any time. By clicking the Sign up button, you indicate that you agree to our Terms and Conditions and have read and understand our Privacy Policy (updated).