Downloads
Abstract
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.
Issue: Vol 18 No 2 (2015)
Page No.: 56-67
Published: Jun 30, 2015
Section: Economics, Law and Management - Research article
DOI: https://doi.org/10.32508/stdj.v18i2.1118
Download PDF = 719 times
Total = 719 times
Most read articles by the same author(s)
- Liem Thanh Nguyen, Thien Dinh Nguyen, Hung Nhu Duong, INVESTMENT PERFORMANCE BY INDUSTRY IN VIETNAM , Science and Technology Development Journal: Vol 18 No 1 (2015)