Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212447 
Year of Publication: 
2019
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 13/2019
Publisher: 
Bank of Finland, Helsinki
Abstract: 
Do closer political ties with a global superpower improve sovereign borrowing conditions? We use data on voting at the United Nations General Assembly along with foreign aid flows to construct an index of political ties and find evidence that suggests closer political ties leads to both better sovereign credit ratings and lower yields on sovereign bonds. We use heads-of-state official visits and coalition forces troop contributions as exogenous instruments to further strengthen the findings.
JEL: 
F50
F35
H63
G24
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-282-2
Document Type: 
Working Paper

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