search query: @author Aizenman, J. / total: 19
reference: 10 / 19
| Author: | Aizenman, J. |
| Title: | Trade dependency, bargaining and external debt |
| Journal: | Journal of International Economics
1991 : AUG, VOL. 31:1-2, p. 101-120 |
| Index terms: | TRADE FOREIGN DEBTS INVESTMENT DEBT SERVICE RATIO LATIN AMERICA DEVELOPING COUNTRIES |
| Language: | eng |
| Abstract: | The welfare effects of a conditional debt relief in the presence of partial defaults are analyzed. Even for an economy in a state of partial default, external finance for investment in highly trade-dependent sectors may be warranted. A marginal relief of the present debt service, conditional on an equivalent increase in investment in the trade-dependent sectors, will benefit the debtor and will increase the future repayment. Investment targeted towards highly productive trade-dependent sectors will benefit both creditors and debtors. The investment can be implemented by a marginal relief of the present debt service, or through direct investment. Some policy implications are mentioned and remarks concerning extensions and qualifications are made. |
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