Traditionally an old concern among economists has referred to the effects that specific financial systems may have on economic performance. Here we investigate the “stylised facts” among financial systems and banking crises by using individual and principal-components indicators and sets of OLS regressions. The study relies on a set of banking fragility, financial structure and development indicators for a sample of 47 economies between 1990 and 1997. The stylised facts suggest that financial development is associated to financial systems leaded by stock and securities markets. Furthermore the evidence suggests that such association is magnified during episodes of borderline or systemic banking crises. Thus what our findings might suggest is that banking crises may encourage financial development and the transformation of financial systems into market-based ones.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
168.
Length: Date of creation: 05 Jan 2006 Date of revision: Publication status: Published in Revista Mexicana de Economía y Finanzas (Mexican Journal of Economics and Finance) Issue 1.v.5(2006): pp. 13-27 Handle: RePEc:pra:mprapa:168
Find related papers by JEL classification: G1 - Financial Economics - - General Financial Markets C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
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