Banking on Democracy: The Political Economy of International Private Bank Lending in Emerging Markets

Javier Rodríguez and Javier Santiso

MPRA Paper from University Library of Munich, Germany

Abstract: Clearly, a new agenda is emerging for private international banks. Political issues such as human rights seem to be a current concern. But what about democracy? What about political regimes? Are they taken into account by private banks when they decide whether to invest in a country? Put another way, do private banks have democratic political preferences? In this article, we focus on cross-border lending from international bank(er)s. The questions asked are as follows. Do bank(er)s react positively (that is by increasing their lending) when an emerging democracy appears? Do we witness increased bank lending after democratic transitions? Lastly, is there any relation between democratic consolidation and bank lending?

Keywords: Banks; Capital flows; Democracy; Emerging markets (search for similar items in EconPapers)
JEL-codes: G2 (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-ban and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Banking on Democracy: The Political Economy of International Private Bank Lending in Emerging Markets (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:12907

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