Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/17694
Authors: 
Lusinyan, Lusine
Buch, Claudia M.
Year of Publication: 
2000
Series/Report no.: 
Kieler Arbeitspapiere 994
Abstract: 
One key focus of the on-going debate on the integration of international financial markets have been measures to lengthen the maturity of foreign debt. Short-term debt is typically considered to be volatile and thus a potential trigger of currency crises. In contrast to the vivid policy debate on these issues, there is relatively little theoretical and empirical evidence on the determinants of short-term debt. This paper summarizes the theoretical literature on the issue and presents a stylized theoretical model, which focuses on the risks and benefits of short-term debt under conditions of uncertainty. Empirical evidence shows that the level of economic development, the presence of financial centres, and the share of loans to banks have a positive impact on the share of short-term loans. OECD membership, in contrast, has a negative influence.
Subjects: 
foreign debt maturity
JEL: 
F21
F23
G21
Document Type: 
Working Paper

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