Work

Re-examining democratization's impact on foreign borrowing costs during the first era of globalization

Year: 2024

Type: article

Abstract: This article re-examines the association between democratization and the cost of borrowing abroad in the first era of globalization. Using two representative datasets the literature offers but employing an improved method for panel event study, we find that democratization's impact on the costs of foreign borrowing is uncertain. In one case, the estimated coefficients are similar to the sign and magnitude of the original study but with larger standard errors, rendering the impact statistically insignificant. In the other case, the estimated coefficients hover around zero and are not statistically different from zero.

Source: Financial History Review

DOI: 10.1017/s096856502400009x

Authors: Michael Funke, Tai-kuang Ho, Andrew Tsang

Institutions: Universität Hamburg, National Taiwan University, Association of Southeast Asian Nations

Language: English

Topic: Global Financial Crisis and Policies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,450

Funder: National Science and Technology Council