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Évaluation économique du risque pays : Quelle démarche et pourquoi elle est indispensable pour les investisseurs
[Economic evaluation of country risk: What approach and why it is essential for investors]

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  • Gaombalet, Célestin Guy-Serge

Abstract

The ultimate objective of the economic evaluation of country risk (EECR) is to assess the likely level of risk that investors are willing to accept. In this perspective, this paper aims to raise awareness of the role, function and practice of the country risk economist in today's financial world where cross-border capital mobility is not only a real vector of economic and social development for receiving countries, but also a sovereign risk factor for foreign investors. Thus, benchmarking a country aims at knowing it well enough to be able to explain it to the executive committees of international financial institutions (IFIs) and/or multinational enterprises (MNEs), which will then take a position on what could happen, in order to help decide whether or not to invest there. Also, this paper attempts to address some of the concerns by making some contributions to the work of country risk economists in financial institutions and establishments, other non-deposit taking financial companies (NDFCs) offering financial services such as insurance industries, private equity or mutual funds, pension funds, leasing companies, sovereign wealth funds, etc. Multinational companies (MNFs), research firms, think tanks and even individuals with real financing capacity are also concerned by this contribution note.

Suggested Citation

  • Gaombalet, Célestin Guy-Serge, 2023. "Évaluation économique du risque pays : Quelle démarche et pourquoi elle est indispensable pour les investisseurs [Economic evaluation of country risk: What approach and why it is essential for inve," MPRA Paper 117288, University Library of Munich, Germany, revised 13 May 2023.
    • Handle: RePEc:pra:mprapa:117288
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    References listed on IDEAS

    as
    1. Carmen M. Reinhart & Graciela L. Kaminsky, 1999. "The Twin Crises: The Causes of Banking and Balance-of-Payments Problems," American Economic Review, American Economic Association, vol. 89(3), pages 473-500, June.
    2. Graciela Laura Kaminsky, 1999. "Currency and Banking Crises: The Early Warnings of Distress," IMF Working Papers 1999/178, International Monetary Fund.
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    More about this item

    Keywords

    Country risk analyst - Sovereign issuer - Economic evaluation - International finance - Investors;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G2 - Financial Economics - - Financial Institutions and Services

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