The Company States Keep: International Economic Organizations and Investor Perceptions [Hardcover]

This book argues that investor risk in emerging markets hinges on the company a country keeps.This book argues that investor risk in emerging markets hinges on the company a country keeps. When a country joins an economic agreement with states that are widely known to be stable, it looks less risky. Conversely, when a country joins a group with more unstable members, it looks more risky. Investors use the company a country keeps as shorthand in evaluating that country's willingness to repay government debt.This book argues that investor risk in emerging markets hinges on the company a country keeps. When a country joins an economic agreement with states that are widely known to be stable, it looks less risky. Conversely, when a country joins a group with more unstable members, it looks more risky. Investors use the company a country keeps as shorthand in evaluating that country's willingness to repay government debt.This book argues that investor risk in emerging markets hinges on the company a country keeps. When a country signs on to an economic agreement with states that are widely known to be stable, it looks less risky. Conversely, when a country joins a group with more unstable members, it looks more risky. Investors use the company a country keeps as a heuristic in evaluating that country's willingness to honor its sovereign debt obligations. This has important implications for the study of international cooperation as well as of sovereign risk and credibility at the domestic level.1. Introduction: the company you keep; 2. International institutions and sovereign risk; 3. The company you keep in comparative perspective; 4. The effects of good company; 5. When emerging markets join up with bad company; 6. How risk for core members changes on IO expansion; 7. Conclusion. This very creative book blends two important areas in international relations: the influence of international institutions and the effects of reputation. While the former has become a crucial plÃ