Banking Crises and Short and Medium Term Output Losses in Emerging and Developing Countries: The Role of Structural and Policy Variables

Davide Furceri, Davide Furceri, Aleksandra Zdzienicka

Research output: Contribution to journalArticlepeer-review

24 Citations (Scopus)

Abstract

The aim of this paper is to assess the dynamic impact of banking crises on output for a panel of developing economies. Using an unbalanced panel of 159 countries from 1970 to 2006, the paper shows that banking crises produce significant output losses. Output losses are larger for relatively richer economies, characterized by a higher level of financial deepening and larger current account imbalances. Flexible exchange rates, fiscal and monetary policy, and liquidity support policies have been found to attenuate the effect of the crises. © 2012 Elsevier Ltd.
Original languageEnglish
Pages (from-to)2369-2378
Number of pages10
JournalWorld Development
Volume40
Publication statusPublished - 2012

All Science Journal Classification (ASJC) codes

  • Geography, Planning and Development
  • Development
  • Sociology and Political Science
  • Economics and Econometrics

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