Does bank deposits volatility react to political instability in developing countries?

Joseph G. Attila

Finance Research Letters, 2022, vol. 49, issue C

Abstract: This study examines empirically the relationship between the volatility of bank deposits and political instability using panel data covering more than 80 developing countries over the period 1970 to 2020. We use fixed-effects models that account for the serial correlation and spatial dependence, GMM regressions and staggered DiD to deal with the endogeneity and causality issues. Though tentative, our regressions reveal that political instability could increase the volatility of bank deposits. Our finding also confirms the importance of interest rate, suggesting a potential interaction with political instability and political violence.

Keywords: Bank deposit; Volatility; Political instability (search for similar items in EconPapers)
JEL-codes: G21 G28 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S154461232200349X
Full text for ScienceDirect subscribers only

Related works:
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:eee:finlet:v:49:y:2022:i:c:s154461232200349x

DOI: 10.1016/j.frl.2022.103126

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().