{
  "title": "International Commodity Price Shocks, Democracy, and External Debt",
  "publication": "IMF Working Papers, March 1, 2010",
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  "summary": "We examine the effects that international commodity price shocks have on external debt using panel data for a world sample of 93 countries spanning the period 1970-2007.",
  "sections": [
    {
      "heading": "Summary of study",
      "content": "- Sample: panel data for a world sample of 93 countries spanning the period 1970-2007.\n- Main finding: positive commodity price shocks lead to a significant reduction in the level of external debt in democracies, but to no significant reduction in the level of external debt in autocracies."
    },
    {
      "heading": "Empirical findings",
      "content": "- External debt response:\n  - Democracies: positive commodity price shocks → significant reduction in the level of external debt.\n  - Autocracies: positive commodity price shocks → no significant reduction in the level of external debt.\n- Government expenditures:\n  - Autocracies: positive commodity price shocks lead to a statistically significant and quantitatively large increase in total government expenditures.\n  - Democracies: government expenditures did not increase significantly following positive commodity price shocks.\n- Default risk on external debt:\n  - Democracies: following positive windfalls from international commodity price shocks, the risk of default on external debt decreased.\n  - Autocracies: following positive windfalls, the risk of default on external debt increased significantly.\n\n---\n\n Content in this bundle\n\n- wp1053 - References\n  - wp1053 - References (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp1053 - References (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/international-commodity-price-shocks-democracy-and-external-debt-23646"
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    "Authors: Markus Bruckner, Rabah Arezki",
    "Published: March 1, 2010",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451963427.001",
    "Sample: panel data for a world sample of 93 countries spanning the period 1970-2007.",
    "Main finding: positive commodity price shocks lead to a significant reduction in the level of external debt in democracies, but to no significant reduction in the level of external debt in autocracies.",
    "External debt response:",
    "Government expenditures:",
    "Default risk on external debt:",
    "**_wp1053 - References**"
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