The politics of the executive, legislative veto players and foreign debt

Purpose The purpose of this paper is to examine a curvilinear effect of legislative constraints on foreign debt. Design/methodology/approach A cross-sectional, time-series data analysis of 68 developing countries during the period from 1981 to 1999 was performed. Findings Foreign borrowing is most likely to increase at both low and high levels of legislative constraints, while it is most likely to decrease at moderate levels. Originality/value The paper is a first-cut empirical analysis of a curvilinear relationship between legislative constraints and foreign debt.