A HAZARD RATE APPROACH TO THE TIMING OF LDC DEBT RESCHEDULING FROM 1970 TO 1990

Utilizing the duration of non-rescheduling years data, this paper re-examines the debt rescheduling experiences of LDCs' during the 1970-1990 time period. In addition, it investigates the significance of the outcome of debt rescheduling negotiations in affecting a country's future debt servicing capacity. Our results indicate that the outcome of debt renegotiations during the 1980s did not appear to significantly affect countries' future debt servicing capacity. instead, our results suggest that a country's liquidity position and the global economic condition appear to be the most important factors in determining whether a country will be faced with additional debt servicing difficulty.