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dc.contributor.author Broner, Fernando
dc.contributor.author Martin, Alberto
dc.contributor.author Pandolfi, Lorenzo
dc.contributor.author Williams, Tomas
dc.date.accessioned 2021-10-25T08:28:24Z
dc.date.available 2021-10-25T08:28:24Z
dc.date.issued 2021
dc.identifier.citation Broner F, Martin A, Pandolfi L, Williams T. Winners and losers from sovereign debt inflows. J Int Econ. 2021 Feb 8;30. DOI: 10.1016/j.jinteco.2021.103446
dc.identifier.issn 0022-1996
dc.identifier.uri http://hdl.handle.net/10230/48797
dc.description Data de publicació electrónica: 08-02-2021
dc.description.abstract We study the effects of sovereign debt inflows on domestic firms. To do so, we exploit episodes of large sovereign debt inflows, which follow the announcements of the inclusion of six emerging countries into major sovereign debt indexes. We find that these events reduce government bond yields, appreciate the domestic currency, and have heterogeneous stock-market effects on domestic firms. Firms operating in tradable industries experience lower returns than firms in non-tradable industries. In addition, financial firms, government-related firms, and firms that rely more on external financing experience higher returns. The effect on financial and government-related firms is stronger in countries that display larger reductions in government bond yields. The effect on tradable firms is stronger in countries that display stronger appreciations. We provide a stylized model that rationalizes these results. Our findings shed novel light on the channels through which sovereign debt inflows affect firms in emerging countries.
dc.description.sponsorship Pandolfiand Williams acknowledge support from the Einaudi Institute for Economics and Finance (2017 EIEF research grant) and the Columbian College Facilitating Fund from George Washington University. Broner and Martin acknowledge support from the Spanish Ministry of Economy, Industry, and Competitiveness through the I + D Excelencia grant (ECO2016–79823-P), the Spanish Ministry of Science and Innovation through the Severo Ochoa Programme for Centers of Excellence in R&D grant (CEX2019–000915-S), the Generalitat de Catalunya (AGAUR grant 2017-SGR0–1393), the CERCA Programme/Generalitat de Catalunya, and the Barcelona GSE Research Network. Martin also acknowledges support from the European Research Council under EU Seventh Frame-work Programme (FP7/2007–2013) ERC Consolidator Grant (615651-MacroColl).
dc.format.mimetype application/pdf
dc.language.iso eng
dc.publisher Elsevier
dc.relation.ispartof J Int Econ. 2021 Feb 8;30. DOI: 10.1016/j.jinteco.2021.103446
dc.rights This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/4.0/
dc.title Winners and losers from sovereign debt inflows
dc.type info:eu-repo/semantics/article
dc.identifier.doi http://doi.org/10.1016/j.jinteco.2021.103446
dc.subject.keyword Sovereign debt
dc.subject.keyword Capital inflows
dc.subject.keyword Exchange rate
dc.subject.keyword Government yields
dc.subject.keyword Stock prices
dc.subject.keyword Emerging markets
dc.relation.projectID info:eu-repo/grantAgreement/ES/1PE/ECO2016-79823-P
dc.relation.projectID info:eu-repo/grantAgreement/ES/2PE/CEX2019-000915-S
dc.relation.projectID info:eu-repo/grantAgreement/EC/FP7/615651
dc.rights.accessRights info:eu-repo/semantics/openAccess
dc.type.version info:eu-repo/semantics/publishedVersion

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