IMF Working Papers

Improving Sovereign Financing Conditions Through Data Transparency

By Jesus R Gonzalez-Garcia

November 18, 2022

Download PDF

Preview Citation

Format: Chicago

Jesus R Gonzalez-Garcia. Improving Sovereign Financing Conditions Through Data Transparency, (USA: International Monetary Fund, 2022) accessed December 3, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Does it pay off to be transparent and, if so, can the benefits of transparency be measured? This paper provides an affirmative answer to both questions, supported by novel evidence on the link between transparency through dissemination of economic data and sovereign bond spreads. It explores changes in sovereign financing conditions when countries join the IMF Data Standards Initiatives—a multilateral framework that promotes data transparency as a global public good. The results from event studies and local projection models show a significant decrease in spreads following the adoption of the standards. In addition, countries with relatively weaker governance benefit the most from signaling their effort toward strengthening transparency.

Keywords: Data transparency, EMBIG spreads, Event studies, Governance., IMF Data Standards Inititatives, Local projection methods, Sovereign borrowing

Publication Details

  • Pages:

    17

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2022/230

  • Stock No:

    WPIEA2022230

  • ISBN:

    9798400224232

  • ISSN:

    1018-5941