315 records from EconBiz based on author Name

1. Overcoming the obstacles to adoption of GDP-linked debt

Borensztein, Eduardo; Obstfeld, Maurice; Ostry, Jonathan David;
2018
Type: Aufsatz im Buch; Book section;
Availability: Link

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2. How Does Foreign Direct Investment Affect Economic Growth?

abstract

We test the effect of foreign direct investment (FDI) on economic growth in a cross-country regression framework, utilizing data on FDI flows from industrial countries to 69 developing countries over the last two decades. Our results suggest that FDI is an important vehicle for the transfer of technology, contributing relatively more to growth than domestic investment. However, the higher productivity of FDI holds only when the host country has a minimum threshold stock of human capital. In addition, FDI has the effect of increasing total investment in the economy more than one for one, which suggests the predominance of complementarity effects with domestic firms

Borensztein, Eduardo; De Gregorio, Jose; Lee, Jong-Wha;
2021
Availability: Link

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3. The Pros and Cons of Full Dollarization

abstract

We analyze the costs and benefits of full dollarization compared to its closest alternative, a currency board, quantifying for Argentina where possible. Potential advantages include lower borrowing costs and deeper integration into world markets. One cost is the transfer of seigniorage to the United States. The country may also lose the “exit option” to devalue in the face of major shocks. Similarly, even a country with a currency board may lose some ability to act as lender of last resort to the banking system. We review how various country characteristics influence the balance of arguments

Borensztein, Eduardo;
2021
Availability: Link Link
Citations: 2 (based on OpenCitations) Cited By

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4. Stabilization and Structural Reform in Czechoslovakia : An Assessment of the First Stage

abstract

This paper analyzes the Czechoslovak reform program which was launched on January 1, 1991. Under this program, Czechoslovakia has taken decisive steps to establish a market economy, while achieving price stability and a viable external position through restrictive financial policies. But there has been a sharp decline in output. The eventual output recovery is predicated on completing structural market reforms, such as the development of financial markets and the safeguard of their stability, privatization of large enterprises, minimizing government interference with economic signals, and the imposition of the "hard" budget constraint

Aghevli, Bijan; Borensztein, Eduardo; VanDerWilligen, Tessa A.;
2021
Availability: Link Link

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5. The Choice of Exchange Rate Regime and Monetary Target in Highly Dollarized Economies

abstract

We examine the implications of high degrees of dollarization for the choice of exchange rate regime and the information content of various monetary aggregates in developing countries. We conclude that a high degree of currency substitution argues for a more fixed exchange rate regime, while asset substitution may imply that either more rigid or more flexible regimes may be appropriate. We also ask whether the most informative monetary aggregates include dollar assets. Based on an analysis of five countries, we conclude inter alia that broader aggregates that include dollar assets perform better than those that do not

Berg, Andrew; Borensztein, Eduardo;
2021
Availability: Link Link

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6. Exchange rate pass-through in South America : an overview

abstract

The effectiveness of exchange rate adjustments depends critically on the extent to which depreciations "pass through" to inflation, an effect that is known as exchange rate pass-through (ERPT). In particular, if an exchange rate depreciation does not result in a lasting change in relative prices, namely a real depreciation, it will not provide the desirable competitiveness gains. This paper looks at the question of pass-through and its determinants for the group of countries whose central banks are members of the Financial Stability and Development (FSD) network. All of these countries experienced large terms of trade shocks and large depreciations in the past couple of years. The findings are that ERPT in the FSD countries is moderate and has become lower over time, in line with the international experience. The pass-through moderation has benefitted from the adoption of floating exchange rates and especially an increase in monetary policy credibility. Despite the relatively lower ERPT in the past two decades, the exchange rate continues to be a large determinant of inflation in several countries.

Borensztein, Eduardo; Queijo von Heideken, Virginia;
2016
Type: Arbeitspapier; Working Paper; Graue Literatur; Non-commercial literature;
Availability: Link Link

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7. The Welfare Gains from Macro-Insurance Against Natural Disasters

abstract

This paper uses a dynamic optimization model to estimate the welfare gains that a small open economy can derive from insuring against natural disasters with catastrophe (CAT) bonds. We calibrate the model by reference to the risk of earthquakes, floods and storms in developing countries. We find that the countries most vulnerable to these risks would find it optimal to use CAT bonds for insurance only if the cost of issuing these bonds were significantly smaller than it is in the data. The welfare gains from CAT bonds range from small to substantial depending on how insurance affects the country's external borrowing constraint. The option of using CAT bonds may bring a welfare gain of several percentage points of annual consumption by improving external debt sustainability. These large gains disappear if the country can opportunistically default on its external debt

Borensztein, Eduardo; Cavallo, Eduardo; Jeanne, Olivier;
2015
Availability: Link Link
Citations: 5 (based on OpenCitations) Cited By

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8. Development diagnostics for the Southern cone

abstract

This is an update and revision of our 2009 study. Using a broad dataset and an original methodology, this paper reports composite development gaps across economic, social and institutional sectors. We define development gap as the distance between the observed and the expected development level of a country. The gaps are indicators of areas where development needs are bigger. Although we estimate the development gaps for all countries with available data, we focus the analysis of our results in five Southern Cone countries: Argentina, Brazil, Chile, Paraguay and Uruguay.

Borensztein, Eduardo; Miller, Sebastián; Sánchez, Gabriel; Valenzuela, Patricio;
2014
Type: Graue Literatur; Non-commercial literature; Arbeitspapier; Working Paper;
Availability: Link Link

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9. Corporate Debt Overhang and Investment : Firm-Level Evidence

abstract

This paper investigates empirically the linkages between corporate debt overhang and investment activity at the firm level for a cross section of large-sized emerging market and developing economies. It analyzes the extent to which investment may be discouraged by high levels of debt that put at risk future profits, as well as firm dimensions that may sharpen the debt-investment link. Using balance sheet data from a broad set of emerging market and developing economy firms, the analysis suggests that corporate debt overhang imposes a sizable effect on investment at the firm level. This linkage is more pronounced for large firms and highly leveraged firms. The analysis also finds evidence of a nonlinear effect, in which debt overhang discourages investment more severely under high levels of indebtedness

Borensztein, Eduardo; Ye, Lei;
2018
Availability: Link

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10. Corporate Debt Overhang and Investment : Firm-Level Evidence

abstract

This paper investigates empirically the linkages between corporate debt overhang and investment activity at the firm level for a cross section of large-sized emerging market and developing economies. It analyzes the extent to which investment may be discouraged by high levels of debt that put at risk future profits, as well as firm dimensions that may sharpen the debt-investment link. Using balance sheet data from a broad set of emerging market and developing economy firms, the analysis suggests that corporate debt overhang imposes a sizable effect on investment at the firm level. This linkage is more pronounced for large firms and highly leveraged firms. The analysis also finds evidence of a nonlinear effect, in which debt overhang discourages investment more severely under high levels of indebtedness

Borensztein, Eduardo; Ye, Lei;
2018
Availability: Link Link

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