THE DETERMINANTS OF DEVELOPING-COUNTRIES ACCESS TO THE INTERNATIONAL CAPITAL-MARKET

The traditional analysis of Western credit relations with Developing Countries mainly focuses on the possibilities of debtor countries' meeting their debt obligations and tries to find factors behind possible default. The present study explicitly considers flows of funds between creditors and debtors and investigates the determinants of developing countries' access to the international capital market. A combination of GDP per capita, net-debt-to-GDP and the investment share predicts access to the 1985-87 capital market correctly in 75 per cent of the cases.