Corruption, soundness of the banking sector, and economic growth: A cross-country study

Title
Corruption, soundness of the banking sector, and economic growth: A cross-country study
Author(s)
박정희
Keywords
DEPOSIT INSURANCE; CAPITAL REGULATION; RISK-TAKING
Issue Date
201209
Publisher
ELSEVIER SCI LTD
Citation
JOURNAL OF INTERNATIONAL MONEY AND FINANCE, v.31, no.5, pp.907 - 929
Abstract
This paper explores the impact of corruption on both the banking sector and economic growth; we determine the impact using 76 macroeconomic data from various countries over the period 2002-2004. The results of various cross-sectional regressions provide substantial evidence that corruption significantly aggravates the problems with bad loans in the banking sector. In this study, we also find some evidence of a new channel through which corruption lowers economic growth: Corruption distorts the allocation of bank funds from normal projects to bad projects, which decreases the quality of private investments, hence it decreases economic growth. (C) 2011 Elsevier Ltd. All rights reserved.
URI
http://hdl.handle.net/YU.REPOSITORY/27305http://dx.doi.org/10.1016/j.jimonfin.2011.07.007
ISSN
0261-5606
Appears in Collections:
상경대학 > 경제금융학부 > Articles
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