External liabilities, domestic institutions and banking crises in developing economies
Nabila Boukef Jlassi,
Helmi Hamdi () and
Joseph Joyce ()
Review of International Economics, 2018, vol. 26, issue 1, 96-116
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 to 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.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
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 (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:reviec:v:26:y:2018:i:1:p:96-116
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0965-7576
Access Statistics for this article
Review of International Economics is currently edited by E. Kwan Choi
More articles in Review of International Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().