scholarly journals THE EFFECT OF SOVEREIGN DEBT ON ECONOMIC GROWTH: THE CASE OF OIL-RICH COUNTRIES

2020 ◽  
Vol 10 (2) ◽  
pp. 262-267
Author(s):  
Hussein Salameh ◽  
Ahmed Alodadi ◽  
Khaled Alzubi
Keyword(s):  
Economic Growth ◽  
Sovereign Debt ◽  
Rich Countries

Generating Prosperity for Working Families in Affluent Countries

2018 ◽  
Keyword(s):  
Economic Growth ◽  
Real Income ◽  
Living Standards ◽  
Financial Strain ◽  
Inclusive Growth ◽  
Working Families ◽  
The Rich ◽  
Rich Countries ◽  
Analysis Of Performance

This book addresses the central challenge facing rich countries: how to ensure that ordinary working families see their living standards and the prospects for their children improve rather than stagnate over time. It presents the findings from a comprehensive analysis of performance over recent decades across the rich countries of the OECD, in terms of real income growth around and below the middle. It relates this performance to overall economic growth, exploring why these often diverge substantially, and to the different models of capitalism or economic growth embedded in different countries. In-depth comparative and UK-focused analyses also focus on wages and the labour market and on the role of redistribution. Going beyond income, other indicators and aspects of living standards are also incorporated including non-monetary indicators of deprivation and financial strain, wealth and its distribution, and intergenerational mobility. By looking across this broad canvas, the book teases out how ordinary households have fared in recent decades in these critically important respects, and how that should inform the quest for inclusive growth and prosperity.

External Debts and Economic Growth when Debt Rating Matters

2021 ◽  
Author(s):  
Ly Dai Hung
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Cross Section ◽  
Sovereign Debt ◽  
Developing Economies ◽  
External Debt ◽  
Fixed Effect ◽  
Panel Regression ◽  
Economic Growth Rate ◽  
Determinants Of Economic Growth

The paper investigates the dependence pattern of economic growth on external debt supply by accounting for the safety of debts, measured by the sovereign debt rating. The method of cross-section regression is based on a sample of 145 advanced and developing economies with averaged data over the 1990–2019 period. The pattern of economic growth follows a U-shaped curve, for which the growth rate is first decreasing and then increasing on the external debt supply. A possible explanation can rely on the sovereign debt rating. For low supply of external debts, more supply of debts reduces the debt rating, which, in turn, lowers the economic growth rate. But for high enough supply of debts, more debts raise their rating, improving the growth rate. These results are robust on controlling for various determinants of economic growth and on the fixed effect panel regression.

scholarly journals SUSTAINABLE DEVELOPMET FACETS: DOES SOVEREIGN DEBT ACCELERATE THE ECONOMIC GROWTH

2019 ◽  
pp. 675-687
Author(s):  
Sudawan Somjai ◽  
Saroge Vasuvanich ◽  
Akarapitta Meechaiwong ◽  
Watcharin Joemsittiprasert
Keyword(s):  
Economic Growth ◽  
Sovereign Debt

scholarly journals How Much Did China's WTO Accession Increase Economic Growth in Resource-Rich Countries?

2013 ◽  
Author(s):  
Thomas Barnebeck Andersen ◽  
Mikkel Barslund ◽  
Casper Worm Hansen ◽  
Thomas Harr ◽  
Peter S. Jensen
Keyword(s):  
Economic Growth ◽  
Wto Accession ◽  
Rich Countries

Assessing sovereign risk: the case of rich countries

2014 ◽  
Vol 6 (3) ◽  
pp. 212-225 ◽  
Author(s):  
Norbert Gaillard
Keyword(s):  
Sovereign Debt ◽  
Credit Rating ◽  
Debt Crisis ◽  
Sovereign Debt Crisis ◽  
Bond Yields ◽  
Content Type ◽  
The Great Recession ◽  
Market Participants ◽  
Investment Grade ◽  
Rich Countries

Purpose – This paper aims to shed new light on the inability of credit rating agencies (CRAs) to forecast the recent defaults and so-called quasi-defaults of rich countries. It also describes how Moody’s sovereign rating methodology has been modified – and could be further improved – to solve this problem. Design/methodology/approach – After converting bond yields into yield-implied ratings, accuracy ratios are computed to compare the respective performances of CRAs and market participants. Then Iceland’s and Greece’s ratings at the beginning of the Great Recession are estimated while accounting for the parameters included in the new methodology implemented by Moody’s in 2013. Findings – Market participants outperformed Moody’s and Standard & Poor’s in terms of anticipating the sovereign debt crisis that hit several European countries starting in 2008. However, the new methodology implemented by Moody’s should lead to more conservative and accurate sovereign ratings. Originality/value – The chronic inability of CRAs to anticipate public debt crises in rich countries is dangerous because the countries affected – which are generally rated in the investment-grade category – are substantially downgraded, amplifying the sovereign debt crisis. This study is the first to demonstrate that Moody’s has learned from its recent failures. In addition, it recommends ways to detect serious threats to the creditworthiness of high-income countries.

scholarly journals Can Human Development Bonds Reduce the Agency Costs of the Resource Curse?

2019 ◽  
Vol 12 (1) ◽  
pp. 191-245
Author(s):  
Luke Sperduto
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Human Development ◽  
Empirical Research ◽  
Resource Curse ◽  
Sovereign Bond ◽  
Weak Institutions ◽  
Potential Benefits ◽  
Rich Countries ◽  
Significant Support

Abstract Especially in resource rich countries with weak institutions of governance, the interests of governments often diverge from those of their citizens and creditors. Sovereign bond contracts can potentially help align these interests, to the benefit of all parties, by indexing payment obligations to improvements in the health and education of the issuer’s citizenry. To that end, this Article proposes a Human Development Bond (HDB) with a variable coupon schedule that both insures issuers against recessions and incentivizes them to encourage investment in human capital when economic growth is strong. The potential benefits of such an instrument can only be realized, however, with significant support from the international community. Moreover, further empirical research is needed to calibrate the HDB’s coupon schedule to provide well-timed and appropriately sized debt relief.

Does Aid Spur Economic Growth?

2016 ◽  
Vol 1 (1) ◽  
pp. 47
Author(s):  
Musa Talba JIBIR ◽  
Salamatu Idris ISAH ◽  
Bello A. IBRAHIM
Keyword(s):  
Economic Growth ◽  
Poverty Reduction ◽  
Basic Education ◽  
Health Care Facilities ◽  
Social Program ◽  
Economic Management ◽  
Poor Countries ◽  
Private And Public ◽  
Rich Countries ◽  
The Impact

<p>Development Assistance is based on the idea that Rich Countries can and should help Poor countries to find the path to sustainable economic growth and poverty reduction—especially those that lack sources of capital. The paper began by reviewing the various sources and composition of net capital flows to developing countries and examined the respective roles of private and public flows in social program it further discussed the arguments and evidence on both sides of the question of whether aid is effective in promoting economic growth. The evidence of a direct effect on growth is inconclusive. Does this mean that aid should be cut back? Not necessarily. The impact of Aid should be evaluated not only in relation to its direct effects, but also in terms of its role in improving governance and economic management, and its contribution to social amenities such as basic education, health care facilities and access, water and infant mortality.</p>

scholarly journals How much did China's WTO accession increase economic growth in resource-rich countries?

2014 ◽  
Vol 30 ◽  
pp. 16-26 ◽  
Author(s):  
Thomas Barnebeck Andersen ◽  
Mikkel Barslund ◽  
Casper Worm Hansen ◽  
Thomas Harr ◽  
Peter Sandholt Jensen
Keyword(s):  
Economic Growth ◽  
Wto Accession ◽  
Rich Countries

scholarly journals The Indirect Effect of Democracy on Economic Growth in the MENA Region (1990–2015)

2018 ◽  
Author(s):  
Shereen Nosier ◽  
Aya El-Karamani
Keyword(s):  
Economic Growth ◽  
Indirect Effect ◽  
Capital Accumulation ◽  
Trade Openness ◽  
Physical Capital ◽  
Mena Region ◽  
Poor Countries ◽  
Mena Countries ◽  
The One ◽  
Rich Countries

This paper examines the indirect effect of democracy on economic growth using a dataset of 17 MENA countries from 1990 to 2015. Democracy is assumed to affect growth through a series of channels: education, health, physical capital accumulation per labor, government consumption, and trade openness. A system of six simultaneous equations, 3SLS, is used to estimate the effect of democracy on growth through these channels. For further analysis, the countries are classified into groups according to the democratic status on the one side, and the level of income on the other. The results indicate that democracy enhances growth through its positive effect on health in all classifications of countries within the MENA region. However, the effect of democracy on growth through education and physical capital/labor is non-monotonic. Democracy always hinders growth through government size and trade openness. Once all of these indirect effects are accounted for, the overall effect of democracy on growth is negative in less democratic countries and poor countries, but positive in more democratic countries and rich countries.

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