Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/247146 
Year of Publication: 
2021
Series/Report no.: 
EHES Working Paper No. 216
Publisher: 
European Historical Economics Society (EHES), s.l.
Abstract: 
Do emerging markets need to sacrifice economic sovereignty in order to borrow more cheaply on the international capital markets? To explore this, we exploit a natural experiment following the Treaty of Berlin in 1878 when four Balkan states - Bulgaria, Greece, Romania, and Serbia - received full or de facto independence. Using a novel dataset of monthly bond prices from the Berlin and London stock exchanges, we find that a sacrifice of national sovereignty or 'supersanctions' was one way for these emerging markets to receive more favourable borrowing conditions. Romania never submitted to such measures, however, but was usually able to borrow more cheaply than her neighbours.
Subjects: 
Bulgaria
creditworthiness
emerging markets
Greece
Romania
Serbia
sovereign debt
JEL: 
E4
E5
G1
N2
Document Type: 
Working Paper

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