A Review of Country Risk Assessment Approaches: New Empirical Evidence

Banks, international lending institutions, investors and financial managers have focused their attention on developing effective country risk models mainly during the last two decades. This paper provides a survey of the statistical and multicriteria decision aid methodologies applied in the assessment of country risk. Multicriteria decision aid methodologies are free of the restrictive statistical assumptions and can be used as an alternative to multivariate statistical techniques for the study of country risk.