Global Trends And Debt Relief For Asia, Latin America, And Africa: A Multiple Discriminant Analysis

Abstract

Emerging country debt levels are at an all time high.  There seems to be a great need to find a solution to the mounting level of external debt in the continents of Asia, South America and Africa.  Utilizing multiple discriminant analysis this study looks at whether indebted countries in the various continents responded differently to macroeconomic factors and whether the level of debt made those economies respond to macroeconomic measures.  This study supports the notion that Asian countries are more affected by debt factors influencing their economies than countries in Latin America or Africa.   The study further shows that various debt levels; e.g.; high, medium, versus low have a significant influence on macroeconomic factors.  Therefore this article strongly supports policies for country debt reduction worldwide.