INVESTIGATING THE INFLUENCE OF COUNTRY CREDIBILITY ON THE CHANCE OF CURRENCY CRISIS

Bilge Kagan Ozdemir

The International Journal of Business and Finance Research, 2008, vol. 2, issue 2, 117-126

Abstract: This paper deals with the relationship between country credibility and currency crises by using crosscountry pooled data with a multinomial logit model. We use Corruption Perception Index (CPI) published by Transparency International, which is a global non-governmental organization devoted to combating corruption, as a proxy for country credibility. The main findings from the multinomial logit models indicate that country credibility has a significant influence on currency crisis. The applied corruption index is statistically significant. Negative coefficients on this index prove a relationship between country corruption and the likelihood of currency crisis. Moreover, marginal effects of corruption index are high in relation to marginal effects of other explanatory variables. These results suggest that approaching currency crisis should capture country corruption itself or any other proxy of country prestige.

JEL-codes: E51 F31 G18 (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v2n2-2008/IJBFR-V2N2-2008-9.pdf (application/pdf)

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:ibf:ijbfre:v:2:y:2008:i:2:p:117-126

Access Statistics for this article

The International Journal of Business and Finance Research is currently edited by Terrance Jalbert

More articles in The International Journal of Business and Finance Research from The Institute for Business and Finance Research
Bibliographic data for series maintained by Mercedes Jalbert ( this e-mail address is bad, please contact ).