Growth after debt restructuring in 1999-2014: an econometric analysis.

Abstract

The aftermath of sovereign defaults is extremely interesting but it also an highly debatable topic. This paper starts with the inquiry of the consequences of sovereign debt restructurings on growth performance during the period 1999-2014 with panel data analysis using a sample 26 countries that defaulted in this period. Hence, this treatment group is also compared to a control group using also difference-in-difference and fixed effects estimations. The concluding chapter briefly evaluates the debt relief initiatives of multilateral organizations, such as the IMF and the World Bank, pertaining to the economic policy prescriptions related to the "Washington consensus" implemented to the Sub-Saharan countries.