A Gravity Model of International Lending: Trade, Default and Credit

One reason why countries service their external debts is the fear that default might lead to shrinkage of international trade. If so, then creditors should systematically lend more to countries with which they share closer trade links. We develop a simple theoretical model to capture this intuition, then test and corroborate this idea.

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Year of publication:	2002-09
Authors:	Rose, Andrew K ; Spiegel, Mark
Institutions:	C.E.P.R. Discussion Papers
Subject:	bank \| bilateral \| empirical \| loan \| panel \| theory

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Extent:	application/pdf
Series:	CEPR Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	Number 3539
Classification:	F13 - Commercial Policy; Protection; Promotion; Trade Negotiations ; F33 - International Monetary Arrangements and Institutions
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005789181