INSTITUTIONS, ECONOMIC OPENNESS AND CREDIT CYCLES: AN INTERNATIONAL EVIDENCE
INSTITUTIONS, ECONOMIC OPENNESS AND CREDIT CYCLES: AN INTERNATIONAL EVIDENCE
Author(s): Canh Phuc Nguyen, Christophe Schinckus, Su Dinh Thanh, Felicia Hui Ling ChongSubject(s): Economic policy, International relations/trade, Financial Markets
Published by: Fundacja Centrum Badań Socjologicznych
Keywords: institutional quality; FDI; trade openness; credit cycles;
Summary/Abstract: This study aims at investigating the influence of institutions and economic openness on credit cycles in a global sample. Six institutional quality indicators combined with net inward FDI and trade openness are collected to estimate, respectively, the effects of institutions and economic openness on credit cycles. Our panel data covers 60 economies, including 32 low- and middle-income economies (LMEs) and 28 high-income economies (HIEs), the data ranging between 2003 and 2017. Although better institutions tend to stimulate credit growth, they significantly stabilize credit cycles. These findings are documented with significant results in LMEs while it is less obvious in HIEs.
Journal: Journal of International Studies
- Issue Year: 13/2020
- Issue No: 4
- Page Range: 229-247
- Page Count: 19
- Language: English