Resource Windfalls and Emerging Market Sovereign Bond Spreads: The Role of Political Institutions
Rabah Arezki () and
Markus Brückner ()
No 10/179, IMF Working Papers from International Monetary Fund
We examine the effect that revenue windfalls from international commodity price shocks have on sovereign bond spreads using panel data for 30 emerging market economies during the period 1997-2007. Our main finding is that positive commodity price shocks lead to a significant reduction in the sovereign bond spread in democracies, but to a significant increase in the spread in autocracies. To explain our finding we show that, consistent with the political economy literature on the resource curse, revenue windfalls from international commodity price shocks significantly increased real per capita GDP growth in democracies, while in autocracies GDP per capita growth decreased.
Keywords: Commodity price shocks; Sovereign Bond Spread, Political Institutions, sovereign bond, sovereign bonds, bond, bond spreads, bonds, (search for similar items in EconPapers)
References: Add references at CitEc
Citations View citations in EconPapers (12) Track citations by RSS feed
Downloads: (external link)
Journal Article: Resource Windfalls and Emerging Market Sovereign Bond Spreads: The Role of Political Institutions (2012)
Working Paper: Resource Windfalls and Emerging Market Sovereign Bond Spreads: The Role of Political Institutions (2011)
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:imf:imfwpa:10/179
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Series data maintained by Jim Beardow ().