NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

A Gravity Model of Sovereign Lending: Trade, Default and Credit

Andrew K. Rose, Mark M. Spiegel

NBER Working Paper No. 9285
Issued in October 2002
NBER Program(s):   IFM

One reason why countries service their external debts is the fear that default might lead to shrinkage of international trade. If so, then creditors should systematically lend more to countries with which they share closer trade links. We develop a simple theoretical model to capture this intuition, then test and corroborate this idea.

download in pdf format
   (343 K)

email paper

This paper is available as PDF (343 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w9285

Published: Andrew K. Rose & Mark M. Spiegel, 2004. "A Gravity Model of Sovereign Lending: Trade, Default, and Credit," IMF Staff Papers, Palgrave Macmillan, vol. 51(s1), pages 50-63, June. citation courtesy of

Users who downloaded this paper also downloaded these:
Deardorff Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?
Anderson w16576 The Gravity Model
Anderson and van Wincoop w8079 Gravity with Gravitas: A Solution to the Border Puzzle
Reinhart w8738 Default, Currency Crises and Sovereign Credit Ratings
Rose w9273 Do We Really Know that the WTO Increases Trade?
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us