External Liabilities, Domestic Institutions and Banking Crises in Developing Economies

Nabila Boukef Jlassi (), Helmi Hamdi and Joseph Joyce

MPRA Paper from University Library of Munich, Germany

Abstract: We investigate the impact of foreign equity and debt on the occurrence of banking crises in 61 lower-income and middle-income economies during the 1984-2010 period. We also focus on the effects of domestic institutions on banking crises and whether they mitigate or exacerbate the impact of the external liabilities. We find that FDI liabilities lower the probability of a crisis, while debt liabilities increase their incidence. However, institutions that lower financial or political risk partially offset the impact of debt liabilities, as does government stability. A decrease in investment risk directly reduces the incidence of banking crises.

Keywords: banking crises; FDI; portfolio; debt; institutions (search for similar items in EconPapers)
JEL-codes: F32 F34 G15 G21 (search for similar items in EconPapers)
Date: 2016-05-24, Revised 2017-04-06
New Economics Papers: this item is included in nep-ban
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/81120/1/MPRA_paper_81120.pdf original version (application/pdf)

Related works:
Journal Article: External liabilities, domestic institutions and banking crises in developing economies (2018)
Working Paper: External liabilities, domestic institutions and banking crises in developing economies (2018)
Working Paper: External liabilities, domestic institutions and banking crises in developing economies (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:81120

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().