Working Papers in full text
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
All
Other research-related activities and publications of the IMF can be found at IMF Research
|
Free Email Notification
Receive emails when we post new
items of interest to you.
Subscribe or
Modify your profile
|
|
|
|
The Value of Institutions for Financial Markets: Evidence from Emerging Markets
|
Author/Editor: |
Akitoby, Bernardin | Stratmann, Thomas |
| Authorized for Distribution: |
February 1, 2009 |
|
Electronic Access: |
Free Full Text (PDF file size is 565KB)
Use the free Adobe Acrobat Reader to view this PDF file.
|
|
|
|
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
|
|
Summary: This paper investigates the value of political institutions for financial markets, using panel data from emerging market countries. We test the hypothesis that changes in political institutions, such as improvements in democratic rights and increased government accountability, have a direct effect on sovereign interest rate spreads. We find that financial markets value institutions over and above the economic and fiscal outcomes these institutions shape. Democracy and accountability generally lower sovereign spreads, political risk tends to increase them, and financial markets tend to view election years negatively.
|
|
|
|
Order a print copy
|
|
Series: |
Working Paper No. 09/27 |
|
Subject(s): |
Capital markets | Financial sector | Political economy | Governance | Social policy | Emerging markets | Cross country analysis | Economic models |
|
Author's keyword(s): |
sovereign risk
| spreads
| institutions
| financial markets
| emerging markets
|
|
|
|
|
| |
Published: |
|
February 1, 2009 |
|
|
|
|
| |
|
|
|
|
Format: |
|
Paper |
| |
Stock No: |
|
WPIEA2009027 |
|
Pages: |
|
21 |
| |
Price: |
|
US$18.00 (Academic Rate: US$18.00 )
|
|
|
|
|
|
|
