The University of Southampton
University of Southampton Institutional Repository

An accumulation of international reserves and external debt: Evidence from developing countries

Mohd Daud, Siti Nurazira and Podivinsky, Jan M. (2011) An accumulation of international reserves and external debt: Evidence from developing countries Global Economic Review, 40, (3), pp. 229-249. (doi:10.1080/1226508X.2011.601626).

Record type: Article

Abstract

The main analytical contribution of this paper is to analyze the cost of the decision to jointly hold reserves and sovereign debt. By analyzing the impact of holding reserves and sovereign debt on sovereign credit ratings will provide the evidence of the costs of holding reserves and debt with respect to credit risk. It is found that the positive effect of accumulation reserves that aims to improve sovereign ratings has been crowding-out by the negative effect of accumulation external debt which resulted in a net negative effect. As such, it is suggested that countries reduce their sovereign debt in order to maintain a good credit risk position while holds international reserves at the optimal level of 3.67 in a month of imports which is slightly higher than the conventional rule.

Full text not available from this repository.

More information

Published date: 9 September 2011
Keywords: international reserves, external debt, developing economies, credit risk
Organisations: Economics

Identifiers

Local EPrints ID: 197495
URI: http://eprints.soton.ac.uk/id/eprint/197495
ISSN: 1226-508X
PURE UUID: 06e0e5a3-2b03-42c2-9850-b1684ba727d3

Catalogue record

Date deposited: 23 Sep 2011 13:53
Last modified: 18 Jul 2017 11:20

Export record

Altmetrics

Contributors

Author: Siti Nurazira Mohd Daud

University divisions

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×