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Sovereign Borrowing by Developing Countries: What Determines Market Access?

Guido Sandleris, R. Gaston Gelos and Ratna Sahay

No 2004/221, IMF Working Papers from International Monetary Fund

Abstract: 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.

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 (search for similar items in EconPapers)
Pages: 42
Date: 2004-11-01
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Journal Article: Sovereign borrowing by developing countries: What determines market access? (2011) Downloads
Working Paper: Sovereign Borrowing by Developing Countries: What Determines Market Access? (2008) Downloads
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Handle: RePEc:imf:imfwpa:2004/221