Improving Sovereign Financing Conditions Through Data Transparency
IMF Working Papers, November 18, 2022
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- Improving Sovereign Financing Conditions Through Data Transparency
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Bibliographic details
- Authors: Jesus R Gonzalez-Garcia
- Published: November 18, 2022
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400224232.001
Summary findings
- The paper provides an affirmative answer that transparency pays off and that the benefits of transparency can be measured.
- Novel evidence links transparency through dissemination of economic data to sovereign bond spreads.
- Results from event studies and local projection models show a significant decrease in spreads following the adoption of the IMF Data Standards Initiatives.
- Countries with relatively weaker governance benefit the most from signaling their effort toward strengthening transparency.
Context and focus
- 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.
- Subject areas: Data dissemination, Economic and financial statistics, Financial statistics, Special Data Dissemination Standard (SDDS).
- Keywords include: Data dissemination, data dissemination standard, Data transparency, EMBIG spreads, event studies, Financial statistics, GDDS country, Global, governance., IMF Data Standards Initiatives, IMF Data Standards Inititatives, local projection methods, sovereign borrowing, Special Data Dissemination Standard (SDDS).
Methods
- Uses event studies to assess changes in sovereign bond spreads around the adoption of data standards.
- Employs local projection models to quantify dynamics of spreads following adoption of the standards.
Policy implications
- Adoption of IMF Data Standards Initiatives is associated with improved sovereign financing conditions via reduced bond spreads.
- Signaling efforts to strengthen transparency may yield larger benefits for countries with relatively weaker governance.
Source: IMF Working Papers — "Improving Sovereign Financing Conditions Through Data Transparency" by Jesus R Gonzalez-Garcia, Working Paper No. 2022/230 (November 18, 2022).
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- Working Paper