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A blessing in disguise? Banking crises and institutional change.

Andersson, Fredrik N G LU (2016) In World Development 83. p.135-147
Abstract
Weak economic growth is a contributing factor behind many banking crises. In this paper, we test whether banking crises cause long-term institutional change aimed at improving macroeconomic performance and thus indirectly reduce the risk of future crises. Our dataset consists of 22 developed and 34 developing countries covering the period from 1985 to 2009. The results show that banking crises cause institutional change if GDP growth is below potential growth during the crisis. Approximately 40% of the change in institutional quality during the considered period occurred after a banking crisis. These results hold for both developed and developing countries.
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
banking crisis, institutions, economic growth, reforms
in
World Development
volume
83
pages
135 - 147
publisher
Elsevier
external identifiers
  • scopus:84962110875
  • wos:000375628900010
ISSN
1873-5991
DOI
10.1016/j.worlddev.2016.02.002
language
English
LU publication?
yes
id
ee2b8077-4868-457d-909f-ac48ec5602f9 (old id 8830244)
date added to LUP
2016-03-01 10:19:23
date last changed
2017-01-01 03:18:52
@article{ee2b8077-4868-457d-909f-ac48ec5602f9,
  abstract     = {Weak economic growth is a contributing factor behind many banking crises. In this paper, we test whether banking crises cause long-term institutional change aimed at improving macroeconomic performance and thus indirectly reduce the risk of future crises. Our dataset consists of 22 developed and 34 developing countries covering the period from 1985 to 2009. The results show that banking crises cause institutional change if GDP growth is below potential growth during the crisis. Approximately 40% of the change in institutional quality during the considered period occurred after a banking crisis. These results hold for both developed and developing countries.},
  author       = {Andersson, Fredrik N G},
  issn         = {1873-5991},
  keyword      = {banking crisis,institutions,economic growth,reforms},
  language     = {eng},
  pages        = {135--147},
  publisher    = {Elsevier},
  series       = {World Development},
  title        = {A blessing in disguise? Banking crises and institutional change.},
  url          = {http://dx.doi.org/10.1016/j.worlddev.2016.02.002},
  volume       = {83},
  year         = {2016},
}