Determinants of short-term debt : a note
Journal of international financial markets, institutions and money, 2003, Vol. 13, No. 2, pp. 157-170
LUSINYAN, Lusine, BUCH, Claudia M., Determinants of short-term debt : a note, Journal of international financial markets, institutions and money, 2003, Vol. 13, No. 2, pp. 157-170 - http://hdl.handle.net/1814/2124
Retrieved from Cadmus, EUI Research Repository
Although various measures to lengthen the maturity of foreign debt are being discussed, there is relatively little evidence on the determinants of short-term debt. This paper briefly reviews the theoretical literature and discusses a stylized model which stresses the role of short-term debt under conditions of uncertainty. We then complement earlier empirical work by Rodrik and Velasco. Using a new dataset, we find that the determinants of short-term bank lending do not differ significantly between developed and developing countries. The level of economic development and the share of loans to banks are found to have a positive, OECD membership to have a negative impact on the share of short-term loans.
Cadmus permanent link: http://hdl.handle.net/1814/2124
Full-text via DOI: 10.1016/S1042-4431(02)00042-2
ISSN: 1873-0612; 1042-4431
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