Resource Windfalls and Emerging Market Sovereign Bond Spreads : The Role of Political Institutions

We examine the effect that revenue windfalls from international commodity price booms have on sovereign bond spreads using panel data for 38 emerging market economies during the period 1997-2007. Our main finding is that commodity price booms lead to a significant reduction in the sovereign bond spr...

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Main Authors:	Arezki, Rabah, Brückner, Markus
Format:	Journal Article
Language:	en_US
Published:	World Bank 2013
Subjects:	Bond bonds commodities commodity commodity export commodity exports commodity price commodity prices debt democracies economic development Emerging Market emerging market economies Emerging Markets financial support foreign currency natural resource natural resources output political economy
Online Access:	http://hdl.handle.net/10986/15310

id	okr-10986-15310
recordtype	oai_dc
spelling	okr-10986-153102021-04-23T14:03:22Z Resource Windfalls and Emerging Market Sovereign Bond Spreads : The Role of Political Institutions Arezki, Rabah Brückner, Markus Bond bonds commodities commodity commodity export commodity exports commodity price commodity prices debt democracies economic development Emerging Market emerging market economies Emerging Markets financial support foreign currency natural resource natural resources output political economy We examine the effect that revenue windfalls from international commodity price booms have on sovereign bond spreads using panel data for 38 emerging market economies during the period 1997-2007. Our main finding is that commodity price booms lead to a significant reduction in the sovereign bond spread in democracies, but to a significant increase in the spread in autocracies. To explain our finding we show that, consistent with the political economy literature on the resource curse, revenue windfalls from international commodity price booms significantly increased real per capita GDP growth in democracies, while in autocracies GDP per capita growth decreased. 2013-08-22T21:41:20Z 2013-08-22T21:41:20Z 2012-01-18 Journal Article World Bank Economic Review 1564-698X doi:10.1093/wber/lhr015 http://hdl.handle.net/10986/15310 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank World Bank Journal Article Latin America
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	Bond bonds commodities commodity commodity export commodity exports commodity price commodity prices debt democracies economic development Emerging Market emerging market economies Emerging Markets financial support foreign currency natural resource natural resources output political economy
spellingShingle	Bond bonds commodities commodity commodity export commodity exports commodity price commodity prices debt democracies economic development Emerging Market emerging market economies Emerging Markets financial support foreign currency natural resource natural resources output political economy Arezki, Rabah Brückner, Markus Resource Windfalls and Emerging Market Sovereign Bond Spreads : The Role of Political Institutions
geographic_facet	Latin America
description	We examine the effect that revenue windfalls from international commodity price booms have on sovereign bond spreads using panel data for 38 emerging market economies during the period 1997-2007. Our main finding is that commodity price booms lead to a significant reduction in the sovereign bond spread in democracies, but to a significant increase in the spread in autocracies. To explain our finding we show that, consistent with the political economy literature on the resource curse, revenue windfalls from international commodity price booms significantly increased real per capita GDP growth in democracies, while in autocracies GDP per capita growth decreased.
format	Journal Article
author	Arezki, Rabah Brückner, Markus
author_facet	Arezki, Rabah Brückner, Markus
author_sort	Arezki, Rabah
title	Resource Windfalls and Emerging Market Sovereign Bond Spreads : The Role of Political Institutions
title_short	Resource Windfalls and Emerging Market Sovereign Bond Spreads : The Role of Political Institutions
title_full	Resource Windfalls and Emerging Market Sovereign Bond Spreads : The Role of Political Institutions
title_fullStr	Resource Windfalls and Emerging Market Sovereign Bond Spreads : The Role of Political Institutions
title_full_unstemmed	Resource Windfalls and Emerging Market Sovereign Bond Spreads : The Role of Political Institutions
title_sort	resource windfalls and emerging market sovereign bond spreads : the role of political institutions
publisher	World Bank
publishDate	2013
url	http://hdl.handle.net/10986/15310
_version_	1764430987031216128

Resource Windfalls and Emerging Market Sovereign Bond Spreads : The Role of Political Institutions

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