Determinants of Government Bond Spreads in New EU Countries
Irina Bunda () and
Annalisa Ferrando ()
Eastern European Economics, 2010, vol. 48, issue 5, 5-37
For the period 2001-8, we propose an empirical assessment of the determinants of borrowing costs of new European Union member countries. The results of a dynamic panel error-correction model, accounting for both common long-run determinants and cross-country heterogeneities suggest that fundamentals still matter for market assessment of a country's creditworthiness. We check the long-run determinants for two subgroups of countries based on their current account balances. In the context of heightened risk aversion, one group of countries, characterized by low fiscal discipline, is more exposed to domestic sources of vulnerability as well as to swings in market perceptions of sovereign risk.
References: Add references at CitEc
Citations View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
Journal Article: Determinants of Government Bond Spreads in New EU Countries (2010)
Working Paper: Determinants of government bond spreads in new EU countries (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:mes:eaeuec:v:48:y:2010:i:5:p:5-37
Access Statistics for this article
More articles in Eastern European Economics from M.E. Sharpe, Inc.
Series data maintained by Chris Nguyen (). This e-mail address is bad, please contact .