The paper examines the impact of factors belonging to banking system and their interaction with real and monetary shocks on economic volatility. Using panel data on 71 economies from 1998 - 2011, we provide evidence that the lower (higher) the bank competition is, the higher (lower) the impact of inflation (terms-of-trade) volatility on GDP growth volatility is. Banks with high shareholder equity ratios enjoy lower impact of inflation volatility on economic instability. Meanwhile, the extent of bank diversification in operations has no ability in adjusting the impact of the two sock types.
Copyright: The Authors. This is an open access article distributed under the terms of the Creative Commons Attribution License CC-BY 4.0., which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
How to Cite
Nguyen, L., & Pham, K. (2015). INCOME STRUTURE, CAPITAL STRUCTURE, BANK COMPETITION AND ECONOMIC INSTABILITY. Science and Technology Development Journal, 18(2), 56-67. https://doi.org/https://doi.org/10.32508/stdj.v18i2.1118
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Science and Technology Development Journal (STDJ) (1859-0128) is the official journal of Viet Nam National University Ho Chi Minh City, Viet Nam, published by Viet Nam National University Ho Chi Minh City, Viet Nam. Science & Technology Development Journal is a multiple discipline science journal covering from natural science, engineering & technology, humanities, art, laws, economics, earth science, environment, social sciences and health sciences.