The name is absent



is included.  Finally, dummy IMF stands for the role of the IMF in the debt

rescheduling process and it is expected to be positive and signi...cant.

In sum, regarding the external factors, we should .nd a positive correlation
between the dependent variable and both EDT and TDS and a negative relation
between DRES and the variables BOP, CA, EXP and RES. The sign is instead
expected to be positive for the coe^ients of both IAR and PAR. As the domestic
factors are concerned, per capita GDPPC, INFL and GDI should have negative
coe^ients (as a consequence of the debt overhang e∏ect and also because we are
dealing, generally, with countries in troubles). We expect to .nd a signi.cant and
positive coe^ient for the dummy BB, meaning that those countries which have
adhered to these plans are more likely than others to obtain a rescheduling of
their debts.

This equation did not include any of the so called “balance sheet” variables
(see Section 2.2). This is the case because we are more interested in more fun-
damental, longer-term determinants of a country’s solvency and macro-variables
are better proxies for this type of information, while .nancial variables tell more
about a country’s current liquidity. The only two variables which give an indica-
tion on a country’s.nancial situation we considered are the interest and principal
arrears on long-term debt.

As dummies variables are concerned, we have no regional dummies (in earlier
regressions we have actually tried to insert them, in both equations, but they were
not signi.cant). We included a dummy for Backer and Brady plans countries

(BB), that we did not .nd in the related literature.19

19In a b road er sen se, BB could also be interpreted as a dummy for middle-income countries.

25



More intriguing information

1. The name is absent
2. Knowledge, Innovation and Agglomeration - regionalized multiple indicators and evidence from Brazil
3. ROBUST CLASSIFICATION WITH CONTEXT-SENSITIVE FEATURES
4. WP 1 - The first part-time economy in the world. Does it work?
5. 09-01 "Resources, Rules and International Political Economy: The Politics of Development in the WTO"
6. The name is absent
7. The Determinants of Individual Trade Policy Preferences: International Survey Evidence
8. Income Mobility of Owners of Small Businesses when Boundaries between Occupations are Vague
9. Natural Resources: Curse or Blessing?
10. THE RISE OF RURAL-TO-RURAL LABOR MARKETS IN CHINA
11. Smith and Rawls Share a Room
12. Momentum in Australian Stock Returns: An Update
13. The Role of area-yield crop insurance program face to the Mid-term Review of Common Agricultural Policy
14. Ventas callejeras y espacio público: efectos sobre el comercio de Bogotá
15. The Value of Cultural Heritage Sites in Armenia: Evidence From a Travel Cost Method Study
16. Connectionism, Analogicity and Mental Content
17. IMPACTS OF EPA DAIRY WASTE REGULATIONS ON FARM PROFITABILITY
18. CURRENT CHALLENGES FOR AGRICULTURAL POLICY
19. The name is absent
20. Social Cohesion as a Real-life Phenomenon: Exploring the Validity of the Universalist and Particularist Perspectives