Financial Globalization and Fiscal Performance in Emerging Markets

30 Pages Posted: 3 Mar 2006

See all articles by David Hauner

David Hauner

International Monetary Fund (IMF) - African Department

Manmohan Kumar

International Monetary Fund (IMF) - Research Department

Date Written: November 2005

Abstract

In recent years financial globalization and benign global market conditions have helped emerging markets in their external financing and budgetary positions. This paper examines three related issues: (i) the importance of the impact of the benign financial environment on fiscal performance; (ii) the likely fiscal impact of a reversal in this environment; and (iii) the potential contribution of fiscal reforms to maintaining favorable market access. The results suggest that the benefits from the benign environment have been substantial and that the potential reversal of the favorable external conditions underlines the need for further fiscal reforms.

Keywords: Emerging markets, fiscal performance, global imbalances, interest rate spreads

JEL Classification: F3, H5

Suggested Citation

Hauner, David and Kumar, Manmohan, Financial Globalization and Fiscal Performance in Emerging Markets (November 2005). IMF Working Paper, Vol. , pp. 1-30, 2005. Available at SSRN: https://ssrn.com/abstract=888081

David Hauner (Contact Author)

International Monetary Fund (IMF) - African Department ( email )

1700 19th Street, NW
Washington, DC 20431
United States

Manmohan Kumar

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-7771 (Phone)
202-589-7771 (Fax)

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