Banking stability, natural disasters, and state fragility: Panel VAR evidence from developing countries

Pedro Albuquerque and Wassim Rajhi

Research in International Business and Finance, 2019, vol. 50, issue C, 430-443

Abstract: Panel VAR methodology is used in this study to empirically evaluate the effects of natural disasters and state fragility on economic and financial dimensions in developing countries such as GDP per capita, banking and financial system deposits, banks’ Z-scores, and non-performing loans. Results based on three panels of up to 66 countries and 17 years of annual data indicate that natural disasters and state fragility may cause significant economic and financial disruption in low-income and middle-income countries. Shocks from natural disasters seem to be temporary and detrimental only to non-performing loans, while shocks from state fragility appear to be permanent and to create detrimental economic and financial feedback loops.

Keywords: Banking stability; GDP per capita; Natural disasters; State fragility (search for similar items in EconPapers)
JEL-codes: G21 O57 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0275531917308061
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Banking stability, natural disasters, and state fragility: Panel VAR evidence from developing countries (2019)
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:riibaf:v:50:y:2019:i:c:p:430-443

DOI: 10.1016/j.ribaf.2019.06.001

Access Statistics for this article

Research in International Business and Finance is currently edited by T. Lagoarde Segot

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