Debt relief and good governance: new evidence of developing countries for the 
period 1990-2013

Freytag, Andreas; Schmied, Julian

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Debt relief and good governance: new evidence of developing countries for the period 1990-2013

Freytag, A., & Schmied, J. (2019). Debt relief and good governance: new evidence of developing countries for the period 1990-2013. Applied Econometrics and International Development, 19(1), 15-32.

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Item Permalink: https://hdl.handle.net/21.11116/0000-0006-B056-2 Version Permalink: https://hdl.handle.net/21.11116/0000-0006-B057-1

Genre: Journal Article

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Freytag, Andreas, Author
Schmied, Julian¹, Author

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1Max Planck Institute for Demographic Research, ou_3148316

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Abstract: After the introduction of the HIPC Initiative in the early 2000s, indebted LICs had to show a decent governance performance before their debts were forgiven. We discuss the hypothesis that during the follow-up initiatives debt relief decisions refrained from this policy. We test different political economy theories by applying dynamic panel models to a set of debtor countries. We demonstrate that improvements in governance quality led to higher levels of debt forgiveness in 2000-2004, but not in the subsequent periods.  Keywords: Debt relief, Institutions, HIPC Initiative, MDRI, Governance

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Dates: Date issued: 2019

Publication Status: Issued

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Rev. Type: Peer

Identifiers: Other: 6170

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Title: Applied Econometrics and International Development

Source Genre: Journal

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Pages: - Volume / Issue: 19 (1) Sequence Number: - Start / End Page: 15 - 32 Identifier: -