Good governance problems and recent financial crises in some EU countries
The starting point for the research has been the list of 147 banking crises within the period 1976-2011 prepared by the International Monetary Fund. The countries with crises have been analysed with respect to publicly available World Bank indicators in the periods of three years before the crises. The machine learning methodology for subgroup discovery has been used for the analysis. It enabled identification of five subsets of crises. Two of them have been identified as especially useful for the characterization of EU countries with banking crises in the year 2008. Fast growing credit activity is characteristic for the first subgroup while socioeconomic problems recognized by non-increasing quality of public health are decisive for the second subgroup. Comparative analysis of EU countries included into these subgroups demonstrated statistically significant differences with respect to World Bank good governance indicator values for the period before the crisis. Control of corruption, rule of law, and government effectiveness are the indicators which are statistically different for these sets of countries. The significance of the result is in the segmentation of the corpus of countries with banking crises and the recognition of connections between banking crises, socioeconomic problems, and governance effectiveness in some EU countries.
Volume (Year): 7 (2013)
Issue (Month): ()
|Contact details of provider:|| Postal: Kiellinie 66, D-24105 Kiel|
Phone: +49 431 8814-1
Fax: +49 431 8814528
Web page: http://www.economics-ejournal.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael Francis, 2004. "Governance And Financial Fragility," Economic Papers, The Economic Society of Australia, vol. 23(4), pages 386-395, December.
- Gianni De Nicolò & Marcella Lucchetta, 2011.
"Systemic Risks and the Macroeconomy,"
NBER Working Papers
16998, National Bureau of Economic Research, Inc.
- Charles Oman & Christiane Arndt, 2006. "Governance Indicators for Development," OECD Development Centre Policy Insights 33, OECD Publishing.
- Laura Langbein & Stephen Knack, 2010. "The Worldwide Governance Indicators: Six, One, or None?," Journal of Development Studies, Taylor & Francis Journals, vol. 46(2), pages 350-370.
When requesting a correction, please mention this item's handle: RePEc:zbw:ifweej:201341. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.