The boom and bust of latin American lending, 1970-1992

Robert Grosse, Lawrence G. Goldberg

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

External borrowing by debtors in Latin America has followed a rollercoaster pattern during the past two decades. From 1970-1981, the growth of external borrowing averaged 27% per year across the region, while from 1982-1992 foreign debt grew at a rate of 4.3% per year. This paper analyzed the factors which contributed to this pattern of borrowing, from the perspectives of both the lenders (particularly commercial banks) and the borrowers (particularly national governments). A pooled cross-section, time series model was estimated to explain the growth of foreign debt in 18 Latin American countries during the period 1970-1992. In the full period and in one or both sub-periods individually, the growth of foreign debt was significantly positively correlated with GNP and per capita GNP. Debt growth was significantly negatively correlated with the country's trade balance.

Original languageEnglish (US)
Pages (from-to)285-298
Number of pages14
JournalJournal of Economics and Business
Volume48
Issue number3
StatePublished - 1996
Externally publishedYes

Fingerprint

Lending
Borrowing
Foreign debt
Gross national product
Factors
Time series models
Trade balance
Commercial banks
Government
Cross section
Latin American countries
Latin America
Debt

Keywords

  • Latin American lending

ASJC Scopus subject areas

  • Business, Management and Accounting(all)

Cite this

The boom and bust of latin American lending, 1970-1992. / Grosse, Robert; Goldberg, Lawrence G.

In: Journal of Economics and Business, Vol. 48, No. 3, 1996, p. 285-298.

Research output: Contribution to journalArticle

Grosse, Robert ; Goldberg, Lawrence G. / The boom and bust of latin American lending, 1970-1992. In: Journal of Economics and Business. 1996 ; Vol. 48, No. 3. pp. 285-298.
@article{167013a61c104cfb81f973d928ea4b86,
title = "The boom and bust of latin American lending, 1970-1992",
abstract = "External borrowing by debtors in Latin America has followed a rollercoaster pattern during the past two decades. From 1970-1981, the growth of external borrowing averaged 27{\%} per year across the region, while from 1982-1992 foreign debt grew at a rate of 4.3{\%} per year. This paper analyzed the factors which contributed to this pattern of borrowing, from the perspectives of both the lenders (particularly commercial banks) and the borrowers (particularly national governments). A pooled cross-section, time series model was estimated to explain the growth of foreign debt in 18 Latin American countries during the period 1970-1992. In the full period and in one or both sub-periods individually, the growth of foreign debt was significantly positively correlated with GNP and per capita GNP. Debt growth was significantly negatively correlated with the country's trade balance.",
keywords = "Latin American lending",
author = "Robert Grosse and Goldberg, {Lawrence G.}",
year = "1996",
language = "English (US)",
volume = "48",
pages = "285--298",
journal = "Journal of Economics and Business",
issn = "0148-6195",
publisher = "Elsevier Inc.",
number = "3",

}

TY - JOUR

T1 - The boom and bust of latin American lending, 1970-1992

AU - Grosse, Robert

AU - Goldberg, Lawrence G.

PY - 1996

Y1 - 1996

N2 - External borrowing by debtors in Latin America has followed a rollercoaster pattern during the past two decades. From 1970-1981, the growth of external borrowing averaged 27% per year across the region, while from 1982-1992 foreign debt grew at a rate of 4.3% per year. This paper analyzed the factors which contributed to this pattern of borrowing, from the perspectives of both the lenders (particularly commercial banks) and the borrowers (particularly national governments). A pooled cross-section, time series model was estimated to explain the growth of foreign debt in 18 Latin American countries during the period 1970-1992. In the full period and in one or both sub-periods individually, the growth of foreign debt was significantly positively correlated with GNP and per capita GNP. Debt growth was significantly negatively correlated with the country's trade balance.

AB - External borrowing by debtors in Latin America has followed a rollercoaster pattern during the past two decades. From 1970-1981, the growth of external borrowing averaged 27% per year across the region, while from 1982-1992 foreign debt grew at a rate of 4.3% per year. This paper analyzed the factors which contributed to this pattern of borrowing, from the perspectives of both the lenders (particularly commercial banks) and the borrowers (particularly national governments). A pooled cross-section, time series model was estimated to explain the growth of foreign debt in 18 Latin American countries during the period 1970-1992. In the full period and in one or both sub-periods individually, the growth of foreign debt was significantly positively correlated with GNP and per capita GNP. Debt growth was significantly negatively correlated with the country's trade balance.

KW - Latin American lending

UR - http://www.scopus.com/inward/record.url?scp=15844369079&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=15844369079&partnerID=8YFLogxK

M3 - Article

AN - SCOPUS:15844369079

VL - 48

SP - 285

EP - 298

JO - Journal of Economics and Business

JF - Journal of Economics and Business

SN - 0148-6195

IS - 3

ER -