The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
We find that data transparency policy reforms, reflected in subscriptions to the IMF's Data
Standards Initiatives (SDDS and GDDS), reduce the spreads of emerging market sovereign
bonds. To overcome endogeneity issues regarding a country's decision to adopt such reforms,
we first show that the reform decision is largely independent of its macroeconomic
development. By using an event study, we find that subscriptions to the SDDS or GDDS leads
to a 15 percent reduction in the spreads one year following such reforms. This finding is robust
to various sensitivity tests, including careful consideration of the interdependence among the