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Financial Stability and Innovation: The Role of Non-Performing Loans

Year: 2024

Type: article

Abstract: The following article analyses the relationship between Non-Performing Loans and innovation systems at a global level. The analysed data were obtained from the World Bank and the Global Innovation Index for the period 2013-2022 for 149 countries. The analysis was conducted using clustering with the k-Means algorithm, optimized with the Silhouette coefficient and the Elbow method. Subsequently, econometric analysis was carried out using panel data with Random Ef-fects and Fixed Effects. The clustering results show that the optimal number of clusters is three. The econometric analysis highlights the positive relationship between Non-Performing Loans, the exports of cultural and creative services, and the Innovation Input Sub-Index. The results also show the negative relationship between Non-Performing Loans, the H-Index, and the exports and imports of ICT services.

Source: FinTech

DOI: 10.3390/fintech3040027

Authors: Massimo Arnone, Alberto Costantiello, Angelo Leogrande, Syed Kafait Hussain Naqvi, Cosimo Magazzino

Institutions: University of Catania, International Islamic University, Islamabad, Roma Tre University, Western Caspian University

Language: English

Topic: Banking stability, regulation, efficiency

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: gold

Estimated APC paid: $1,137