Assessing the Returns on Investment in Data Openness and Transparency
This paper investigates the potential benefits for a country from investing in data transparency. The paper shows that increased data transparency can bring substantive returns in lower costs of external borrowing. This result is obtained by estima...
| Main Authors: | , |
|---|---|
| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/398401580479439299/Assessing-the-Returns-on-Investment-in-Data-Openness-and-Transparency http://hdl.handle.net/10986/33295 |
| id |
okr-10986-33295 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-332952022-09-20T00:12:42Z Assessing the Returns on Investment in Data Openness and Transparency Kubota, Megumi Zeufack, Albert DATA ACCESS DATA OPENNESS ECONOMIC DATA TRANSPARENCY ECONOMIC INFORMATION SPREADS PUBLIC DEBT EXTERNAL BORROWING This paper investigates the potential benefits for a country from investing in data transparency. The paper shows that increased data transparency can bring substantive returns in lower costs of external borrowing. This result is obtained by estimating the impact of public data transparency on sovereign spreads conditional on the country's level of institutional quality and public and external debt. While improving data transparency alone reduces the external borrowing costs for a country, the return is much higher when combined with stronger institutional quality and lower public and external debt. Similarly, the returns on investing in data transparency are higher when a country's integration to the global economy deepens, as captured by trade and financial openness. Estimation of an instrumental variable regression shows that Sub-Saharan African countries could have saved up to 14.5 basis points in sovereign bond spreads and decreased their external debt burden by US$405.4 million (0.02 percent of gross domestic product) in 2018, if their average level of data transparency was that of a country in the top quartile of the upper-middle-income country category. At the country level, Angola could have reduced its external debt burden by around US$73.6 million. 2020-02-06T17:34:57Z 2020-02-06T17:34:57Z 2020-01 Working Paper http://documents.worldbank.org/curated/en/398401580479439299/Assessing-the-Returns-on-Investment-in-Data-Openness-and-Transparency http://hdl.handle.net/10986/33295 English Policy Research Working Paper;No. 9139 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Sub-Saharan Africa |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
DATA ACCESS DATA OPENNESS ECONOMIC DATA TRANSPARENCY ECONOMIC INFORMATION SPREADS PUBLIC DEBT EXTERNAL BORROWING |
| spellingShingle |
DATA ACCESS DATA OPENNESS ECONOMIC DATA TRANSPARENCY ECONOMIC INFORMATION SPREADS PUBLIC DEBT EXTERNAL BORROWING Kubota, Megumi Zeufack, Albert Assessing the Returns on Investment in Data Openness and Transparency |
| geographic_facet |
Africa Sub-Saharan Africa |
| relation |
Policy Research Working Paper;No. 9139 |
| description |
This paper investigates the potential
benefits for a country from investing in data transparency.
The paper shows that increased data transparency can bring
substantive returns in lower costs of external borrowing.
This result is obtained by estimating the impact of public
data transparency on sovereign spreads conditional on the
country's level of institutional quality and public and
external debt. While improving data transparency alone
reduces the external borrowing costs for a country, the
return is much higher when combined with stronger
institutional quality and lower public and external debt.
Similarly, the returns on investing in data transparency are
higher when a country's integration to the global
economy deepens, as captured by trade and financial
openness. Estimation of an instrumental variable regression
shows that Sub-Saharan African countries could have saved up
to 14.5 basis points in sovereign bond spreads and decreased
their external debt burden by US$405.4 million (0.02 percent
of gross domestic product) in 2018, if their average level
of data transparency was that of a country in the top
quartile of the upper-middle-income country category. At the
country level, Angola could have reduced its external debt
burden by around US$73.6 million. |
| format |
Working Paper |
| author |
Kubota, Megumi Zeufack, Albert |
| author_facet |
Kubota, Megumi Zeufack, Albert |
| author_sort |
Kubota, Megumi |
| title |
Assessing the Returns on Investment in Data Openness and Transparency |
| title_short |
Assessing the Returns on Investment in Data Openness and Transparency |
| title_full |
Assessing the Returns on Investment in Data Openness and Transparency |
| title_fullStr |
Assessing the Returns on Investment in Data Openness and Transparency |
| title_full_unstemmed |
Assessing the Returns on Investment in Data Openness and Transparency |
| title_sort |
assessing the returns on investment in data openness and transparency |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/398401580479439299/Assessing-the-Returns-on-Investment-in-Data-Openness-and-Transparency http://hdl.handle.net/10986/33295 |
| _version_ |
1764478418615795712 |