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Institutions, economic openness and credit cycles: An international evidence

Year: 2020

Type: article

Abstract: This study aims at investigating the influence of institutions and economic openness on credit cycles in a global sample.Six institutional quality indicators combined with net inward FDI and trade openness are collected to estimate, respectively, the effects of institutions and economic openness on credit cycles.Our panel data covers 60 economies, including 32 low-and middle-income economies (LMEs) and 28 high-income economies (HIEs), the data ranging between 2003 and 2017.Although better institutions tend to stimulate credit growth, they significantly stabilize credit cycles.These findings are documented with significant results in LMEs while it is less obvious in HIEs.

Source: JOURNAL OF INTERNATIONAL STUDIES

DOI: 10.14254/2071-8330.2020/13-4/16

Authors: Canh Phuc Nguyen, Christophe Schinckus, Su Dinh Thanh, Felicia Hui Ling Chong

Institutions: University of Economics Ho Chi Minh City, Taylor's University

Language: English

Topic: Global Financial Crisis and Policies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W3125826772