Credit Booms in Commodity Exporters
No 2017-98, Working Papers from Peruvian Economic Association
This paper identifies 101 credit boom episodes, i.e. periods of exceptional credit growth, in a sample of 115 countries for 1960-2014, and compares the results for commodity exporters and non-commodity exporters. I find that there is no difference in the number and duration of credit booms between commodity exporters and non-commodity exporters, but around two thirds of credit booms in the last four decades in commodity exporters have been associated with high commodity prices. In addition, I find that business cycles dynamics are more exacerbated during a credit boom episode in commodity exporters than in non-commodity exporters, and domestic demand variables tend to end below the trend after the peak of a credit boom. A frequency analysis shows that commodity exporters have a higher likelihood of having credit booms ending in a banking crisis and this result is confirmed by a regression analysis. However, commodity exporters do not have a higher incidence of having a credit boom, and net capital inflows and credit growth remain as the main predictors of these episodes.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: Credit Booms in Commodity Exporters (2018)
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:apc:wpaper:2017-098
Access Statistics for this paper
More papers in Working Papers from Peruvian Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Nelson Ramírez-Rondán ().