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Debt Sustainability Analysis for Emerging and Developing Markets: An Application on Transition Countries

Neo-Transitional Economics

ISBN: 978-1-78441-682-9, eISBN: 978-1-78441-681-2

ISSN: 1569-3767

Publication date: 4 March 2015

Abstract

In this paper, we derive debt sustainability conditions for emerging and developing countries. Since most of these countries have foreign debt, that is, they have the so-called original sin problem, our calculations take into account both domestic and foreign debt. Our setup can be used to evaluate the short-term fiscal stance of a government. Using this setup, we analyze the post crisis fiscal adjustment in transition countries, namely Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyz Republic, Moldova, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. Our findings suggest that country performances are rather mixed and the pace of debt accumulation in some of these countries should be monitored closely.

Keywords

Citation

Ünalmış, . (2015), "Debt Sustainability Analysis for Emerging and Developing Markets: An Application on Transition Countries", Neo-Transitional Economics (International Finance Review, Vol. 16), Emerald Group Publishing Limited, Bingley, pp. 279-297. https://doi.org/10.1108/S1569-376720150000016012

Publisher

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Emerald Group Publishing Limited

Copyright © 2015 Emerald Group Publishing Limited