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An Accumulation of International Reserves and External Debt: Evidence from Developing Countries

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dc.contributor.authorDaud, SNMen_US
dc.contributor.authorPodivinsky, JMen_US
dc.date.accessioned2024-05-29T02:54:23Z
dc.date.available2024-05-29T02:54:23Z
dc.date.issued2011
dc.description.abstractThe main analytical contribution of this paper is to analyze the cost of the decision to jointly hold reserves and sovereign debt. By analyzing the impact of holding reserves and sovereign debt on sovereign credit ratings will provide the evidence of the costs of holding reserves and debt with respect to credit risk. It is found that the positive effect of accumulation reserves that aims to improve sovereign ratings has been crowding-out by the negative effect of accumulation external debt which resulted in a net negative effect. As such, it is suggested that countries reduce their sovereign debt in order to maintain a good credit risk position while holds international reserves at the optimal level of 3.67 in a month of imports which is slightly higher than the conventional rule.
dc.identifier.doi10.1080/1226508X.2011.601626
dc.identifier.epage249
dc.identifier.issn1226-508X
dc.identifier.issue3
dc.identifier.scopusWOS:000295077300001
dc.identifier.spage229
dc.identifier.urihttps://oarep.usim.edu.my/handle/123456789/11463
dc.identifier.volume40
dc.languageEnglish
dc.language.isoen_US
dc.publisherRoutledge Journals, Taylor & Francis Ltden_US
dc.relation.ispartofGlobal Economic Review
dc.sourceWeb Of Science (ISI)
dc.subjectInternational reservesen_US
dc.subjectexternal debten_US
dc.subjectdeveloping economiesen_US
dc.subjectcredit risken_US
dc.titleAn Accumulation of International Reserves and External Debt: Evidence from Developing Countries
dc.typeArticleen_US
dspace.entity.typePublication

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