COUNTRY RISK ASSESSMENT USING DISCRIMINANT ANALYSIS
The purpose of this study is to ident(fy the economic and financial variables which affect a country s credit ·worthiness. Once the lariables are ident(fied, a model is developed using discriminant analysis to separate the forty developing countries used in this study into three spec(fic risk catego...
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| Format: | Article |
| Language: | English |
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People & Global Business Association (P&GBA)
1996-09-01
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| Series: | Global Business and Finance Review |
| Subjects: | |
| Online Access: | http://www.gbfrjournal.org/pds/journal/thesis/20150626021516-Z9CO0.pdf |
| Summary: | The purpose of this study is to ident(fy the economic and financial variables which affect a country s credit ·worthiness. Once the lariables are ident(fied, a model is developed using discriminant analysis to separate the forty developing countries used in this study into three spec(fic risk categories: (1) low risk, (2) medium risk, and (3) high risk. Several.financialandeconomicvariablesaretested,butonlysixwereconsideredsignificantenoughtobeused in the model. These six variables are gross national product per capita, debt service ratio, export, import, debt outstanding and disbursed as a percentage of GNP and, finally, international reserve to debt outstanding. |
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| ISSN: | 1088-6931 2384-1648 |