IMF Working Papers

Improving Sovereign Financing Conditions Through Data Transparency

By Jesus R Gonzalez-Garcia

November 18, 2022

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Jesus R Gonzalez-Garcia. Improving Sovereign Financing Conditions Through Data Transparency, (USA: International Monetary Fund, 2022) accessed September 19, 2024

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Summary

Does it pay off to be transparent and, if so, can the benefits of transparency be measured? This paper provides an affirmative answer to both questions, supported by novel evidence on the link between transparency through dissemination of economic data and sovereign bond spreads. It explores changes in sovereign financing conditions when countries join the IMF Data Standards Initiatives—a multilateral framework that promotes data transparency as a global public good. The results from event studies and local projection models show a significant decrease in spreads following the adoption of the standards. In addition, countries with relatively weaker governance benefit the most from signaling their effort toward strengthening transparency.

Keywords: Data transparency, EMBIG spreads, Event studies, Governance., IMF Data Standards Inititatives, Local projection methods, Sovereign borrowing

Publication Details

  • Pages:

    17

  • Volume:

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  • DOI:

    ---

  • Issue:

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  • Series:

    Working Paper No. 2022/230

  • Stock No:

    WPIEA2022230

  • ISBN:

    9798400224232

  • ISSN:

    1018-5941