Friends for the benefits: The effects of political ties on sovereign borrowing conditions

Show full item record

Title: Friends for the benefits: The effects of political ties on sovereign borrowing conditions
ISBN: 978-952-323-282-2
Author: Ambrocio, Gene ; Hasan, Iftekhar
Organization: Bank of Finland
Series: Bank of Finland Research Discussion Papers
ISSN: 1456-6184
Series year: 2019
Series number: 13/2019
Year of publication: 2019
Publication date: 22.7.2019
Pages: 28
Subject (yso): politiikka; valtionvelka; äänestykset; luottoluokitukset
Keywords: ulkomaanapu; poliittiset siteet; Yhdistyneet kansakunnat (YK)
JEL: F50; F35; H63; G24
Other keywords: Political economy; Sovereign borrowing; Foreign aid; UN voting
Abstract: Do closer political ties with a global superpower improve sovereign borrowing conditions? We use data on voting at the United Nations General Assembly along with foreign aid flows to construct an index of political ties and find evidence that suggests closer political ties leads to both better sovereign credit ratings and lower yields on sovereign bonds. We use heads-of-state official visits and coalition forces troop contributions as exogenous instruments to further strengthen the findings.
Rights: https://helda.helsinki.fi/bof/copyright


Files in this item

Total number of downloads: Loading...

Files Size Format View
BoF_DP_1913.pdf 1.061Mb PDF View/Open

This item appears in the following Collection(s)

Show full item record