Annals of Finance

, Volume 14, Issue 3, pp 379–414 | Cite as

What determines the share of non-resident public debt ownership? Evidence from Euro Area countries

  • João Tovar JallesEmail author
Research Article


This paper provides, for the first time, a detailed picture of the composition of public debt by type of holder (foreign vs. domestic) and type of holding institution for a set of 7 Euro Area countries between 1991Q1 and 2015Q4. In addition, it empirically inspects the determinants of nonresident public debt ownership, accounting for both domestic and external factors and paying special attention to the global financial crisis period. Using a previously unexplored dataset and by means of panel and country-specific time series regressions, we find that improved fiscal positions, systemic stress and financial volatility, a strong business cycle position, all increase share of public debt held by non-residents. Also, a higher share of monetary and financial institutions cross-border holdings of sovereign debt issued by the other Euro Area countries was correlated with higher share of public debt held by non-residents. Finally, results are robust to outliers inspection and other sensitivity checks.


Sovereign debt Central bank Financial markets Monetary and financial institutions Europe 

JEL Classification

C22 E44 F34 G15 H63 



We thank an anonymous referee for useful comments and suggestions. The usual disclaimer applies. Any remaining errors are the author’s sole responsibility. The opinions expressed herein are those of the author and do not reflect those of his employer.


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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Centre for Globalization and GovernanceNova School of Business and EconomicsLisbonPortugal
  2. 2.UECE – Research Unit on Complexity and EconomicsISEG Technical University of LisbonLisbonPortugal

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