The Company States Keep

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. '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 part of the study of international relations, the latter is still not as central to the field as it should be. This book will be important for the fields of international organization and international political economy.' Jon Pevehouse, University of Wisconsin, Madison1. 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.