Understanding country risk assessment: a historical review

  • Xiaolei Sun*
  • , Qianqian Feng
  • , Jianping Li
  • *Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

Country risk reflects a country’s overall risk status, and it has an extremely important impact on global investment and trade between countries. This study is conducted to examine country risk analysis and assessment models. The historical stages of country risk assessment are characterized, and the development and application of country risk analysis and assessment techniques are reviewed. Country risk assessment modelling techniques developed in two major frameworks: Multi-criteria decision-making framework based on macroeconomic fundamentals and asset pricing framework based on market information. Based on our analysis, we identify current trends and research gaps, as well as relevant future research directions.

Original languageEnglish
Pages (from-to)4329-4341
Number of pages13
JournalApplied Economics
Volume53
Issue number37
DOIs
StatePublished - 2021
Externally publishedYes

Keywords

  • Assessment
  • Country risk
  • Sovereign CDS
  • Sovereign default

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