Growth, External Debt and Sovereign Risk in a Small Open Economy

1989 ◽  
Author(s):  
Jagdeep S. Bhandari ◽  
Nadeem Ul Haque ◽  
Stephen J. Turnovsky
Keyword(s):  
Open Economy ◽  
Small Open Economy ◽  
External Debt ◽  
Sovereign Risk

Growth, External Debt, and Sovereign Risk in a Small Open Economy

1990 ◽  
Vol 37 (2) ◽  
pp. 388 ◽  
Author(s):  
Jagdeep S. Bhandari ◽  
Nadeem Ul Haque ◽  
Stephen J. Turnovsky
Keyword(s):  
Open Economy ◽  
Small Open Economy ◽  
External Debt ◽  
Sovereign Risk

scholarly journals External Debt and Taylor Rules in a Small Open Economy

2016 ◽  
Vol 21 (5) ◽  
pp. 541-559
Author(s):  
Shigeto Kitano ◽  
Kenya Takaku
Keyword(s):  
Open Economy ◽  
Small Open Economy ◽  
External Debt ◽  
Taylor Rules

scholarly journals Analysis of External Debt Sustainability in Mongolia: An Estimated DSGE Approach

2021 ◽  
Vol 13 (15) ◽  
pp. 8545
Author(s):  
Gunbileg Ganbayar
Keyword(s):  
Open Economy ◽  
Small Open Economy ◽  
External Debt ◽  
Commodity Price ◽  
Structural Shocks ◽  
Debt Sustainability ◽  
Productivity Shock ◽  
Dynamic Stochastic ◽  
The Government ◽  
Household Preference

In this study, we assess the effects of the structural shocks on the external debt sustainability in Mongolia, based on an estimated small open economy (SOE) dynamic stochastic general equilibrium (DSGE) model with the traded, the non-traded, and the mining sectors. The impulse response results show that the traded sector’s productivity shock, the commodity price shock, the mining output shock, and the foreign interest-rate shock have a decreasing effect on external debt accumulation in Mongolia, whereas the non-traded sector’s productivity shock, the household preference shock, and the government spending shock have an increasing effect on the same. Furthermore, we assess Mongolia’s external debt sustainability under the COVID−19 pandemic shock. Under our assumed pandemic scenario, Mongolia’s external debt will increase by 30% from its steady state over the next 10–28 quarters. Our recommended solution in this study is to develop the traded sector, instead of the mining sector, to maintain sustainability of the external debt and to decrease vulnerability of the economy.

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