Determinants of and Prospects for Market Access in Frontier Economies /

In recent years, we have observed an increase in low-income countries' (LICs) access to international capital markets, especially after the Global Financial Crisis (GFC). This paper investigates what factors-country-specific macroeconomic fundamentals and/or external variables-have contributed...

Disgrifiad llawn

Manylion Llyfryddiaeth
Prif Awdur: Hugo C. Alexandrino da Silva, Victor
Awduron Eraill: Antoun de Almeida, Luiza, Singh, Diva
Fformat: Cylchgrawn
Iaith:English
Cyhoeddwyd: Washington, D.C. : International Monetary Fund, 2021.
Cyfres:IMF Working Papers; Working Paper ; No. 2021/137
Pynciau:
Mynediad Ar-lein:Full text available on IMF
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020 |z 9781513573656 
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100 1 |a Hugo C. Alexandrino da Silva, Victor. 
245 1 0 |a Determinants of and Prospects for Market Access in Frontier Economies /  |c Victor Hugo C. Alexandrino da Silva, Luiza Antoun de Almeida, Diva Singh. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2021. 
300 |a 1 online resource (55 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a In recent years, we have observed an increase in low-income countries' (LICs) access to international capital markets, especially after the Global Financial Crisis (GFC). This paper investigates what factors-country-specific macroeconomic fundamentals and/or external variables-have contributed to the surge in external bond issuance by these LICs, which we refer to in our paper as 'frontier economies'. Using data on public and publicly guaranteed (PPG) external bond issuance, outstanding PPG bond stock, as well as sovereign spreads, we employ panel data analysis to examine factors related to the increase in issuance by these economies as well as the reduction in their spreads over time. Our empirical study shows that both country-specific fundamentals (such as public debt, current account balance, level of reserves, quality of institutions) and external variables (such as US growth and the VIX index) play a role in explaining the increased amount of issuance and the decline in spreads of frontier economies' sovereign bonds. The impact of some of these variables on issuance appears to reflect a country's need to issue bonds for external financing ('the supply side' of bond issuance), while others appear to correlate more through their impact on investors' appetite for a country's debt ('the demand side'). In addition, the impact of country-specific variables can also be affected by external factors such as global risk appetite. Our analysis of key factors that have contributed to increased market access for frontier economies over the past decade provides important information to gauge the prospects for their continued market access, and for other LICs to join this group by tapping international markets for the first time. 
538 |a Mode of access: Internet 
650 7 |a Foreign Exchange  |2 imf 
650 7 |a General Financial Markets  |2 imf 
650 7 |a Informal Economy  |2 imf 
650 7 |a Underground Econom  |2 imf 
700 1 |a Antoun de Almeida, Luiza. 
700 1 |a Singh, Diva. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2021/137 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2021/137/001.2021.issue-137-en.xml  |z IMF e-Library