Determinants of Voluntary and Involuntary Bank Lending to Developing Countries in the 1980s.

The current confusion about commercial lending determinants appears to be mainly because conflicting hypotheses apply to different lending regimes. It is important to distinguish between credit constrained and nonconstrained borrowers, and between voluntary and involuntary lending. The empirical investigation focuses on whether or not banks have honored policy reform and favorable economic performance of debtors by providing additional financing. Furthermore, it is assessed in which way bank lending to developing countries has been influenced by sovereign risk since 1982. Copyright 1990 by WWZ and Helbing & Lichtenhahn Verlag AG