CAITLIN GARRABRANT KATERINA MAMAY The Effect of Debt Forgiveness on Transparency Prof. VreelandOctober 14, 2014

Research Question and Hypothesis Debt forgiveness Transparency

What is Transparency? HRV Index- How is it measured? Conditionality and Debt Forgiveness Robin Theobald and Conditionality in Africa

Literature Review Eric Neumayer’s research Nicholas Chauvin and Aart Kraay How is our research different?

Data 125 countries ( ) Observations: 2103 Debt forgiveness mean: million constant 2005 United States dollars -WDI Transparency mean: (HRV index)

Method Control Variables: -Political Regime -GDP per capita -Country and year fixed effects Controlling for total central government debt

Regression Results Very slight positive correlation between debt forgiveness and transparency. Statistical significance at different income thresholds Correlations of control variables

Before, During, and After Variables

Case Studies Benin: - HIPC Zambia - HIPC *Both countries increased transparency before and during participation in the HIPC Initiative. *Transparency levels dropped after completion.

So What?

Implications Does reform last? Are debt relief programs effective policy tools?

Thank you