Is Transparency Good for You, and Can the IMF Help?

WPIEA1322003 Image
Price:  $15.00

Author/Editor: Yongseok Shin, Rachel Glennerster
Release Date: © June, 2003
ISBN : 978-1-45185-540-1
Stock #: WPIEA1322003
Stock Status: On back-order

Languages and formats available



This paper finds that reforms introduced by the IMF to promote transparency have created more informed markets and reduced borrowing costs for those emerging market countries that volunteered for them. Using a quarterly panel estimation with fixed country effects, we find that sovereign spreads fall following the adoption of three different transparency reforms. The effects are economically important, especially for those countries with low initial transparency. We use two-stage least squares to address any endogeneity in the timing of reforms exploiting internal IMF timetables that are unrelated to country events. Next, using a panel GARCH specification, we show that spreads move more than normal in the days immediately following publication of IMF country documents.


Capital markets , Economic policy , Financial institutions and markets , Fiscal policy , Transparency

More publications in this series: Working Papers

More publications by: Yongseok Shin ; Rachel Glennerster