Real Effects of Sovereign Debt Inflow Shocks

Lorenzo Pandolfi and Tomas Williams

AEA Papers and Proceedings, 2020, vol. 110, 511-15

Abstract: This paper analyzes the real effects on firms of sovereign debt inflow shocks in emerging countries. We follow Broner et al. (2019) and exploit six episodes of country inclusions into two major local currency sovereign debt indexes. We complement their evidence by analyzing real variables and find that government-related and financial firms experience larger growth in income, employment, and dividends, relative to tradable firms, in the three years following sovereign debt inflow shocks. Our findings suggest that capital inflows to sovereign debt markets can hamper exports and benefit financial and service-based firms, thus reshaping the domestic economy.

JEL-codes: D22 F14 F34 G35 H63 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://www.aeaweb.org/doi/10.1257/pandp.20201010 (application/pdf)
https://doi.org/10.3886/E120467V1 (text/html)
https://www.aeaweb.org/doi/10.1257/pandp.20201010.appx (application/pdf)
https://www.aeaweb.org/doi/10.1257/pandp.20201010.ds (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:apandp:v:110:y:2020:p:511-15

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/subscribe.html

DOI: 10.1257/pandp.20201010

Access Statistics for this article

AEA Papers and Proceedings is currently edited by William Johnson and Kelly Markel

More articles in AEA Papers and Proceedings from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().