Quid pro quo? Political ties and sovereign borrowing

• 成果类型: Article
• 署名作者: Ambrocio, Gene; Hasan, Iftekhar
• 署名单位: Bank of Finland; Fordham University; University of Sydney
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2021.103523
• 发表日期: 2021
• 关键词: sovereign debt; international relations; Foreign aid; United Nations

摘要

Do stronger 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 stronger political ties with the US is associated with both better sovereign credit ratings and lower yields on sovereign bonds especially among lower income countries. We use official heads-of-state visits to the White House and coalition forces troop contributions as additional measures of the strength of political ties to further reinforce our findings. (c) 2021 Elsevier B.V. All rights reserved.