The Impact of Bailouts on the Probability of Sovereign Debt Crises : Evidence from IMF-Supported Programs /

This paper studies the role of IMF-supported programs in mitigating the likelihood of subsequent sovereign defaults in borrowing countries. Using a panel of 106 developing countries from 1970 to 2016 and an entropy balancing methodology, we find that IMF-supported programs significantly reduce the l...

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Bibliografski detalji
Glavni autor: Balima, Hippolyte
Daljnji autori: Sy, Amadou
Format: Žurnal
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 2019.
Serija:IMF Working Papers; Working Paper ; No. 2019/002
Online pristup:Full text available on IMF
Opis
Sažetak:This paper studies the role of IMF-supported programs in mitigating the likelihood of subsequent sovereign defaults in borrowing countries. Using a panel of 106 developing countries from 1970 to 2016 and an entropy balancing methodology, we find that IMF-supported programs significantly reduce the likelihood of subsequent sovereign defaults. This finding is robust to different specifications of the entropy balancing and alternative identification strategies. Our results suggest that a country that signs a program with the IMF, typically experiences a slight improvement in its sovereign credit rating and a decrease in both government debt-to-GDP and fiscal deficit-to-GDP.
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Opis:1 online resource (38 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Pristup:Electronic access restricted to authorized BRAC University faculty, staff and students