Systemic crisis and growth revisited: Has the global financial crisis marked a new era?

Autor(en): Steinkamp, Sven
Westermann, Frank 
Stichwörter: Business & Economics; CAPITAL ACCOUNT LIBERALIZATION; Economics; Financial liberalization; Long-term growth; Systemic crisis; TOO
Erscheinungsdatum: 2018
Herausgeber: ELSEVIER SCIENCE SA
Journal: ECONOMICS LETTERS
Volumen: 170
Startseite: 50
Seitenende: 54
Zusammenfassung: 
Occasional crises have been shown to be part of growth enhancing mechanism (see Ranciere, Tornell and Westermann, 2008). In this paper, we document that neither the stereotypical case study of India vs. Thailand, nor the benchmark growth-regression in this earlier research support this result anymore when updating the sample by one decade that includes the Global Financial Crisis, 2007/8. We analyze the time-varying nature of this relationship in rolling regressions and an historical dataset. In the subset of countries with enforceability problems, we find that the link between occasional crisis, measured by the negative skewness of credit growth, and per-capita output growth still remains intact. (C) 2018 Elsevier B.V. All rights reserved.
ISSN: 01651765
DOI: 10.1016/j.econlet.2018.05.032

Show full item record

Google ScholarTM

Check

Altmetric