IDEAS home Printed from https://ideas.repec.org/a/lpe/efijnl/200703.html
   My bibliography  Save this article

External Debt Sustainability in Three Asian Economies

Author

Listed:
  • Esta Lestari

    (Economic Research Centre, Indonesia Institute of Sciences (P2E-LIPI))

Abstract

This paper examines whether three highly indebted countries in Asia, namely Indonesia, Korea and the Philippines had borrowed in an unsustainable manner. Krueger’s approach (1987) for calculating the relative contribution of global changes to a country’s debt sustainability is employed. In particularly, the global shocks examined are the oil shock in 1978 and the Asian crisis in 1997. The analysis shows that the two shocks led to a different impact for each country in terms of the difficulties to service its debts. The Asian crisis led to a higher impact compared to the oil shock for Indonesia in servicing its debt which subsequently classifies Indonesia as a country with unsustainable debt. In contrast, the Philippines felt higher impact in its debt due to the oil shock than the crisis. As for Korea, it has been able to manage the debt sustainability due to its superior export performance

Suggested Citation

  • Esta Lestari, 2007. "External Debt Sustainability in Three Asian Economies," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 55, pages 47-64, April.
    • Handle: RePEc:lpe:efijnl:200703
    as

    Download full text from publisher

    File URL: http://www.lpem.org/repec/lpe/efijnl/200703.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Debt sustainability; Oil Shock 1978/1978; Asian crisis 1997/1998;
    All these keywords.

    JEL classification:

    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • H00 - Public Economics - - General - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lpe:efijnl:200703. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Halley Yudhistira (email available below). General contact details of provider: https://edirc.repec.org/data/feuinid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.