Arbeitspapier
Foreign aid and developing countries' creditworthiness
We explore whether foreign aid affects developing countries' creditworthiness, as proxied by the Institutional Investor's measure of country credit risk. Based on a simple model of international borrowing and lending, we develop the hypothesis that current aid reduces the likelihood of future default. We then test this hypothesis, using a data set that covers a large number of developing countries in the 1980s and 1990s. While the size of the effect differs across types of aid and country groups, our empirical findings support the notion that aid improves countries' standing vis-a-vis international capital markets.
- Language
-
Englisch
- Bibliographic citation
-
Series: Working Paper ; No. 04.05
- Classification
-
Wirtschaft
International Lending and Debt Problems
Foreign Aid
Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
International Linkages to Development; Role of International Organizations
- Subject
-
Aid
International Investment
Country Risk
Dynamic Panel Estimation
Entwicklungshilfe
Länderrisiko
Entwicklungsländer
Schätzung
- Event
-
Geistige Schöpfung
- (who)
-
Harms, Philipp
Rauber, Michael
- Event
-
Veröffentlichung
- (who)
-
Swiss National Bank, Study Center Gerzensee
- (where)
-
Gerzensee
- (when)
-
2004
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Harms, Philipp
- Rauber, Michael
- Swiss National Bank, Study Center Gerzensee
Time of origin
- 2004
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