The browser you are using is not supported by this website. All versions of Internet Explorer are no longer supported, either by us or Microsoft (read more here: https://www.microsoft.com/en-us/microsoft-365/windows/end-of-ie-support).

Please use a modern browser to fully experience our website, such as the newest versions of Edge, Chrome, Firefox or Safari etc.

Fredrik NG Andersson. Photo.

Fredrik N G Andersson

Associate professor

Fredrik NG Andersson. Photo.

A blessing in disguise? Banking crises and institutional change.

Author

  • Fredrik N G Andersson

Summary, in English

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.

Department/s

  • Department of Economics

Publishing year

2016-07

Language

English

Pages

135-147

Publication/Series

World Development

Volume

83

Document type

Journal article

Publisher

Elsevier

Topic

  • Economics

Keywords

  • banking crisis
  • institutions
  • economic growth
  • reforms

Status

Published

ISBN/ISSN/Other

  • ISSN: 1873-5991