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Sovereign Borrowing by Developing Countries: What Determines Market Access?
Author:
Mr. R. G Gelos
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https://orcid.org/0000-0003-4362-676X
,
Mr. Guido M Sandleris
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, and
Ms. Ratna Sahay
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Series:
IMF Working Papers
Volume/Issue:
Volume 2004: Issue 221
Language:
English
Publication Date:
01 Nov 2004
DOI:
https://doi.org/10.5089/9781451875263.001
ISBN:
9781451875263
ISSN:
1018-5941
Pages:
42
Keywords:
WP; market access; market perception; GDP growth; trade openness; terms of trade; Sovereign debt; international capital markets; syndicated bank loans; bond markets; developing countries; Credit; Private capital flows; Bank credit; Personal income; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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What determines the ability of governments from developing countries to access international credit markets? We examine this question using detailed data on sovereign bond issuances and public syndicated bank loans since 1982. We find that traditional measures of a country’s links with the rest of the world (such as trade openness) and traditional liquidity and macroeconomic indicators do not help much in explaining market access. However, a country’s vulnerability to shocks and the perceived quality of its policies and institutions appear to be important determinants of its government’s ability to tap the markets. We are unable to detect strong punishment of defaulting countries by credit markets.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund