Crises and unpredictability in developing countries.

Developing countries have suffered most of the financial crises in the context of the process of economic and financial globalisation. Both current and previous crises have revealed that unpredictability is a feature common to all the episodes which occurred during the process of globalisation. Alth...

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Publicado en:Third World Quarterly Vol. 39; no. 1; pp. 35 - 51
Autores principales: San-Martín-Albizuri, Nerea, Rodriguez-Castellanos, Arturo
Formato: Artículo
Publicado: Taylor & Francis Ltd Jan2018
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1080/01436597.2017.1368378
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        atl: Crises and unpredictability in developing countries.
      aug:
        au:
          San-Martín-Albizuri, Nerea
          Rodriguez-Castellanos, Arturo
        affil: Department of Financial Economic II, University of the Basque Country, Bilbao, Spain
      su:
        Financial crises
        Economic forecasting
        Public debts
        History
        Economic conditions in developing countries
        Financial globalization
        Risk
        Credit ratings
      sug:
        subj:
          Financial crises
          Economic forecasting
          Public debts
          History
          Credit Bureaus
          Public Finance Activities
          Economic conditions in developing countries
          Financial globalization
          Risk
          Credit ratings
      keyword:
        country risk indexes
        developing countries
        F36
        financial crises forecast
        G01
        Globalisation
        sovereign rating
        uncertainty
        country risk indexes
        developing countries
        F36
        financial crises forecast
        G01
        Globalisation
        sovereign rating
        uncertainty
      ab: Developing countries have suffered most of the financial crises in the context of the process of economic and financial globalisation. Both current and previous crises have revealed that unpredictability is a feature common to all the episodes which occurred during the process of globalisation. Although certain alarms went off, any of those external financial crises were actually predicted by the advanced methods in use for prediction and country risk analysis. Taking into consideration the information above, the aim of this paper is to check the ability to foresee external financial crises in developing countries of both the country risk index published by Euromoney and the Credit Ratings variable included therein. We have focused on the external financial crises that took place between 1992 and 2011, that is, in a full globalisation era. The results are negative. It appears that neither the index nor the sovereign ratings are able to reflect early enough the vulnerabilities that arise previously to the setting off the crisis episodes. This leads us to conclude that the existing models of country risk have limits. Thus, it would necessary to develop new instruments to measure this risk, considering uncertainty as an essential feature of the current economic and financial environment.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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