Like father like sons? The cost of sovereign defaults in reduced credit to the private sector
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 maj...
| Main Authors: | , |
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| Format: | Journal article |
| Language: | English |
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Wiley
2016
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| _version_ | 1797052268596428800 |
|---|---|
| author | Esteves, R Jalles, JT |
| author_facet | Esteves, R Jalles, JT |
| author_sort | Esteves, R |
| collection | OXFORD |
| description | 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. |
| first_indexed | 2024-03-06T18:29:58Z |
| format | Journal article |
| id | oxford-uuid:094c7ccd-9503-4a83-bfa3-8b7c5a0cc416 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T18:29:58Z |
| publishDate | 2016 |
| publisher | Wiley |
| record_format | dspace |
| spelling | oxford-uuid:094c7ccd-9503-4a83-bfa3-8b7c5a0cc4162022-03-26T09:17:37ZLike father like sons? The cost of sovereign defaults in reduced credit to the private sectorJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:094c7ccd-9503-4a83-bfa3-8b7c5a0cc416EnglishSymplectic Elements at OxfordWiley2016Esteves, RJalles, JTWe 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. |
| spellingShingle | Esteves, R Jalles, JT Like father like sons? The cost of sovereign defaults in reduced credit to the private sector |
| title | Like father like sons? The cost of sovereign defaults in reduced credit to the private sector |
| title_full | Like father like sons? The cost of sovereign defaults in reduced credit to the private sector |
| title_fullStr | Like father like sons? The cost of sovereign defaults in reduced credit to the private sector |
| title_full_unstemmed | Like father like sons? The cost of sovereign defaults in reduced credit to the private sector |
| title_short | Like father like sons? The cost of sovereign defaults in reduced credit to the private sector |
| title_sort | like father like sons the cost of sovereign defaults in reduced credit to the private sector |
| work_keys_str_mv | AT estevesr likefatherlikesonsthecostofsovereigndefaultsinreducedcredittotheprivatesector AT jallesjt likefatherlikesonsthecostofsovereigndefaultsinreducedcredittotheprivatesector |