The Economic Content of Indicators of Developing Country Creditworthiness

38 Pages Posted: 15 Feb 2006

See all articles by Nadeem Ul Haque

Nadeem Ul Haque

Pakistan Institute of Development Economics

Nelson C. Mark

University of Notre Dame - Department of Economics and Econometrics; National Bureau of Economic Research (NBER)

Donald J. Mathieson

International Monetary Fund (IMF)

Multiple version iconThere are 2 versions of this paper

Date Written: January 1996

Abstract

This paper analyzes the economic determinants of developing country creditworthiness indicators for over 60 developing countries for the period from 1980 to 1993. Our results indicate that economic fundamentals--the ratio of non-gold foreign exchange reserves to imports, the ratio of the current account balance to GDP, growth, and inflation explain a large amount of the variation in the credit ratings. All developing country ratings were adversely affected by an increase in international interest rates independently of the domestic economic fundamentals. A country`s regional location and the structure of its exports (such as whether it is primarily an exporter of fuel products or manufactured products) were also important.

JEL Classification: G15, G24, P52

Suggested Citation

Ul Haque, Nadeem and Mark, Nelson Chung and Mathieson, Donald J., The Economic Content of Indicators of Developing Country Creditworthiness (January 1996). IMF Working Paper No. 96/9, Available at SSRN: https://ssrn.com/abstract=882910

Nadeem Ul Haque (Contact Author)

Pakistan Institute of Development Economics ( email )

Quaid-i-Azam University Campus, P.O. Box. 1091
Islamabad, Capital 44000
Pakistan
+92-51-9217879 (Phone)
+92-51-9210886 (Fax)

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Nelson Chung Mark

University of Notre Dame - Department of Economics and Econometrics ( email )

442 Flanner
Notre Dame, IN 46556
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Donald J. Mathieson

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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