This paper explores empirically how the adoption of IMF programs affects sovereign risk over the medium term. We find that IMF programs significantly increase the probability of subsequent sovereign defaults by approximately 1.5 to 2 percentage points. These results cannot be attributed to...

Increasing FDI inflows into a booming sector resulting in an appreciation of the real exchange rate may entail further capital inflows and greater appreciation pressure on the real exchange rate up to an abrupt reversal of the capital (Botta, 2015). The macroeconomic instability of such...

Fairness can be an important factor that promotes social trust among people. In this paper, I investigate empirically whether fairness between men and women increases social trust. Using the data of the World Value Survey from 91 countries, I find that gender discriminatory values negatively...