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Country Risk Analysis: A Survey of the Quantitative Methods

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With globalization and financial integration, there has been rapid growth of international lending and foreign direct investment (FDI). In view of this emerging trend, country risk analysis has become extremely important for the international creditors and investors. This paper briefly discusses the concepts and definitions, and presents a survey of the quantitative methods that are used to address various issues related to country risk. It also gives a summary review of selected empirical studies that use these techniques. While these studies display a distinct chronological pattern of gradual improvements in terms of technique and analytical competence none of them is adequate in terms of its scope and coverage. This paper also notes that in view of changing global economic and financial environment, greater availability of quantitative data, and enhanced computing capacity, the researchers should focus on the possibility of applying better techniques to more extensive models of country risk analysis.

Suggested Citation

  • Nath, Hiranya K., 2009. "Country Risk Analysis: A Survey of the Quantitative Methods," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 62(1), pages 69-94.
    • Handle: RePEc:ris:ecoint:0014
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    1. İhsan Pençe & Adnan Kalkan & Melike Şişeci Çeşmeli, 2019. "Estimation of the Country Ranking Scores on the Global Innovation Index 2016 Using the Artificial Neural Network Method," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 1-16, June.
    2. Brown, Christopher L. & Cavusgil, S. Tamer & Lord, A. Wayne, 2015. "Country-risk measurement and analysis: A new conceptualization and managerial tool," International Business Review, Elsevier, vol. 24(2), pages 246-265.
    3. Chopra, Parvesh K. & Kanji, Gopal K., 2010. "On Measuring Country Risk: A new System Modelling Approach - La misura del rischio paese: un nuovo approccio system modelling," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 63(4), pages 479-515.

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    More about this item

    Keywords

    Country Risk Analysis; International Lending; Foreign Direct Investment;
    All these keywords.

    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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