Sovereign Debt in the Americas: New Data and Stylized Facts

CIF Working Paper No. 09/2006

38 Pages Posted: 3 Aug 2006

See all articles by Kevin Cowan

Kevin Cowan

Central Bank of Chile

Eduardo Levy Levy-Yeyati

Universidad Torcuato Di Tella - School of Business

Ugo Panizza

Graduate Institute of International and Development Studies (IHEID) - Department of Economics; CEPR

Federico Sturzenegger

Universidad Torcuato Di Tella; Harvard University - Harvard Kennedy School (HKS); National Bureau of Economic Research (NBER)

Date Written: June 2006

Abstract

In this paper, we introduce the first comprehensive database on sovereign debt systematically compiled to ensure comparability, for all countries in the Americas, and use this new data to highlight the main stylized facts regarding sovereign debt for developing America in the last two decades. We find that debt ratios in developing America are comparable to those in developed countries and have remained stable since the late nineties. By contrast, the composition of debt in the region has changed significantly, shifting from foreign currency external to local currency domestic debt. This onshoring and dedollarization of sovereign debt, contrary to conventional wisdom, has not come at the expense of a shortening of maturities. Furthermore, we find that onshoring is correlated with the level economic development and country size, and with the presence of institutional investors.

JEL Classification: F00, F30, F34, F39

Suggested Citation

Cowan, Kevin and Levy-Yeyati, Eduardo Levy and Panizza, Ugo and Sturzenegger, Federico, Sovereign Debt in the Americas: New Data and Stylized Facts (June 2006). CIF Working Paper No. 09/2006, Available at SSRN: https://ssrn.com/abstract=920646 or http://dx.doi.org/10.2139/ssrn.920646

Kevin Cowan

Central Bank of Chile ( email )

Agustinas 1180
Santiago
Chile

Eduardo Levy Levy-Yeyati (Contact Author)

Universidad Torcuato Di Tella - School of Business ( email )

Saenz Valiente 1010
C1428BIJ Buenos Aires
Argentina

Ugo Panizza

Graduate Institute of International and Development Studies (IHEID) - Department of Economics ( email )

Geneva Avenue de la Paix 11A
Geneva, 1202
Switzerland

CEPR ( email )

London
United Kingdom

Federico Sturzenegger

Universidad Torcuato Di Tella ( email )

Minones 2159
1428 Buenos Aires, 1428
Argentina

Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Cambridge, MA 02138
United States
617-496-3255 (Phone)
617-496-1722 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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