Advanced Search
MyIDEAS: Login to save this paper or follow this series

Impact of Macroeconomic, Political, and Institutional Factorson the Structure of Government Debt in Emerging Market Countries

Contents:

Author Info

  • Anastasia Guscina
Registered author(s):

    Abstract

    Debt crises that have shaken Latin America, Asia, and Russia have brought an increasing attention to the structure of debt in emerging market countries. Using the newly released Jeanne-Guscina EM Government Debt Database 2006 this paper empirically explores the role of macroeconomic, political, and institutional factors in determining the structure of government debt. Results show that unstable macroeconomic environment, poor quality institutions, and uncertain political climate hinder the development of domestic debt market. Moreover, such instability shifts the debt structure away from long-term local currency fixed rate debt towards short-term debt or to debt indexed to foreign currency, short-term interest rates or inflation. Original sin seems to be on the way out, as more and more countries are issuing local currency debt at longer maturities-which can be explained by successful macroeconomic stabilization policies and lessons learned from the debt crises.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=22307
    Download Restriction: no

    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 08/205.

    as in new window
    Length: 43
    Date of creation: 01 Aug 2008
    Date of revision:
    Handle: RePEc:imf:imfwpa:08/205

    Contact details of provider:
    Postal: International Monetary Fund, Washington, DC USA
    Phone: (202) 623-7000
    Fax: (202) 623-4661
    Email:
    Web page: http://www.imf.org/external/pubind.htm
    More information through EDIRC

    Order Information:
    Web: http://www.imf.org/external/pubs/pubs/ord_info.htm

    Related research

    Keywords: Emerging markets; Domestic debt; Financial institutions; Financial stability; Interest rates; inflation; foreign currency; government debt; debt market; currency debt; debt database; short-term debt; domestic debt market; foreign currency debt; international debt; external debt; monetary policy; currency composition; debt structure; domestic currency; sovereign debt; public debt; debt crises; debt structures; private credit; debt service; debt management; long-term debt; central bank; inflation rate; real value; public debt management; domestic debt markets; debt intolerance; debt crisis; high inflation; indebted countries; currency mismatches; repayments; currency risk; debt holders; maturity structure of debt; inflationary expectations; sovereign bond; government debt database; foreign debt; debt data; liquidity crises; reserve bank; high-inflation episodes; debt holder; highly indebted countries; international lending; inflation tax; currency risks; foreign exchange; government deficits; macroeconomic stability; annual inflation; monetary financing; heavily indebted countries; monetary economics; inflationary policy; percent annual inflation; debtor countries; private debt;

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Fernando A. Broner & Guido Lorenzoni & Sergio L. Schmukler, 2013. "Why Do Emerging Economies Borrow Short Term?," Journal of the European Economic Association, European Economic Association, European Economic Association, vol. 11, pages 67-100, 01.
    2. Julien Reynaud & Arnaud Mehl, 2007. "The determinants of "domestic" original sin in emerging market economies," Money Macro and Finance (MMF) Research Group Conference 2006, Money Macro and Finance Research Group 159, Money Macro and Finance Research Group.
    3. Bevilaqua, Afonso S & Garcia, Marcio G P, 2002. "Debt Management in Brazil: Evaluation of the Real Plan and Challenges Ahead," International Journal of Finance & Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 7(1), pages 15-35, January.
    4. Eduardo Levy Yeyati, 2006. "Liquidity Insurance in a Financially Dollarized Economy," NBER Working Papers 12345, National Bureau of Economic Research, Inc.
    5. Beck, T.H.L. & Demirgüç-Kunt, A. & Levine, R., 2000. "A new database on financial development and structure," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3125518, Tilburg University.
    6. S. M. Ali Abbas & Jakob Christensen, 2007. "The Role of Domestic Debt Markets in Economic Growth," IMF Working Papers 07/127, International Monetary Fund.
    7. Anastasia Guscina & Olivier Jeanne, 2006. "Government Debt in Emerging Market Countries," IMF Working Papers 06/98, International Monetary Fund.
    8. Ilan Goldfajn, 1998. "Public Debt Indexation and Denomination: The Case of Brazil," Working Papers Central Bank of Chile, Central Bank of Chile 27, Central Bank of Chile.
    9. Morris Goldstein & Philip Turner, 2004. "Controlling Currency Mismatches in Emerging Markets," Peterson Institute Press: All Books, Peterson Institute for International Economics, Peterson Institute for International Economics, number 373, July.
    10. John D. Burger & Francis E. Warnock, 2003. "Diversification, original sin, and international bond portfolios," International Finance Discussion Papers, Board of Governors of the Federal Reserve System (U.S.) 755, Board of Governors of the Federal Reserve System (U.S.).
    11. Isard,Peter, 2005. "Globalization and the International Financial System," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521843898.
    12. Hausmann, Ricardo & Panizza, Ugo, 2003. "On the determinants of Original Sin: an empirical investigation," Journal of International Money and Finance, Elsevier, Elsevier, vol. 22(7), pages 957-990, December.
    13. Barry Eichengreen & Ricardo Hausmann & Ugo Panizza, 2003. "Currency Mismatches, Debt Intolerance and Original Sin: Why They Are Not the Same and Why it Matters," NBER Working Papers 10036, National Bureau of Economic Research, Inc.
    14. Isard,Peter, 2005. "Globalization and the International Financial System," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521605076.
    15. Michael Kumhof & Evan Tanner, 2005. "Government Debt," IMF Working Papers 05/57, International Monetary Fund.
    16. Claessens, Stijn & Klingebiel, Daniela & Schmukler, Sergio, 2003. "Government Bonds in Domestic and Foreign Currency: The Role of Macroeconomic and Institutional Factors," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3789, C.E.P.R. Discussion Papers.
    17. Bohn, Henning, 1988. "Why do we have nominal government debt?," Journal of Monetary Economics, Elsevier, Elsevier, vol. 21(1), pages 127-140, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Bua, Giovanna & Pradelli, Juan & Presbitero, Andrea F., 2014. "Domestic public debt in low-income countries : trends and structure," Policy Research Working Paper Series 6777, The World Bank.
    2. Marijana Ivanov & Marina Tkalec & Maruška Vizek, 2011. "The Determinants of Financial Euroization in a Post-Transition Country: Do Threshold Effects Matter?," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, Charles University Prague, Faculty of Social Sciences, vol. 61(3), pages 230-251, July.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:08/205. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.