TY  - GEN
AB  - We investigate the impact of sovereign defaults on the ability of the corporate sector in emerging nations to finance itself abroad. We test the hypothesis that sovereign defaults have a negative spillover onto the private sector through credit rationing. We explore a novel data set covering the majority of corporates in emerging nations that received foreign capital between 1880 and 1913. Results confirm that credit rationing existed, was very large, and persisted long beyond the default settlement. The private sector paid a severe cost for their governments' debt intolerance, with negative implications for their growth.
AU  - Esteves, Rui Pedro
AU  - Tovar Jalles, João
CN  - P 3/86
DA  - 2016
ID  - 296112
L1  - https://repository.graduateinstitute.ch/record/296112/files/Esteves_Like_father_like_sons.pdf
L2  - https://repository.graduateinstitute.ch/record/296112/files/Esteves_Like_father_like_sons.pdf
L4  - https://repository.graduateinstitute.ch/record/296112/files/Esteves_Like_father_like_sons.pdf
LK  - https://repository.graduateinstitute.ch/record/296112/files/Esteves_Like_father_like_sons.pdf
N2  - We investigate the impact of sovereign defaults on the ability of the corporate sector in emerging nations to finance itself abroad. We test the hypothesis that sovereign defaults have a negative spillover onto the private sector through credit rationing. We explore a novel data set covering the majority of corporates in emerging nations that received foreign capital between 1880 and 1913. Results confirm that credit rationing existed, was very large, and persisted long beyond the default settlement. The private sector paid a severe cost for their governments' debt intolerance, with negative implications for their growth.
PY  - 2016
T1  - Like father like sons?the cost of sovereign defaults in reduced credit to the private sector
TI  - Like father like sons?the cost of sovereign defaults in reduced credit to the private sector
UR  - https://repository.graduateinstitute.ch/record/296112/files/Esteves_Like_father_like_sons.pdf
Y1  - 2016
ER  -