DOMESTIC CREDITOR RIGHTS AND EXTERNAL PRIVATE DEBT

• 成果类型: Article
• 署名作者: Fan, Haichao; Gao, Xiang
• 署名单位: Fudan University; Shanghai University of Finance & Economics
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/ecoj.12380
• 发表日期: 2017
• 页码: 2410-2440
• 关键词: sovereign debt; RISK; ENFORCEMENT; INEQUALITY; cost; LAW

摘要

This article unbundles institutions protecting domestic and foreign creditors' rights. We estimate a negative relation between the degree of domestic rights protection and the external stock of private non-guaranteed debt in 85 developing countries. A supply-side explanation is that strong domestic protection supports reliable outside financing options for potential external debt defaulters; foreign investors anticipating this would tighten credit constraints ex ante. Then we formalise the argument in a private borrowing and default model, and show that centralisation is no longer necessarily welfare superior.