Economic Freedom and Banking Stability in Selected Countries

author

  • Amir Khakpoor Moghadam
Abstract:

This paper investigates the role of economic freedom in banking stability by using a panel data set for the period 1998-2013 in 43 selected countries. We turn our investigation to the effects of economic freedom on banking stability. The effects of economic freedom on financial stability are estimated. This paper calculates the z-score measure for banking stability. The findings from this study seem to suggest that overall economic freedom has positive impacts on the banking stability in the selected countries. The positive sign of the coefficient indicates that higher (lower) freedom on the activities that banks can undertake increases (reduces) banks’ stability, which is consistent with the view that less regulatory control allows banks to engage in various activities enabling banks to exploit economies of scale and make income from non-traditional sources. Furthermore, higher freedom on entrepreneurs helps to start businesses and job creation and consequently, increases intermediation performance which increases banks’ stability.

Upgrade to premium to download articles

Sign up to access the full text

Already have an account?login

similar resources

effect of political stability and economic freedom on the economic growth in selected developed and developing countries

one of the most important macro-economic objectives of the countries is to create the necessary conditions for promoting economic growth. among them, we can point to political stability and economic freedom. political instability leads to wasting physical and human resources and social capital, which will be considered as an economic rollback. also, the rate of economic growth is associated wit...

full text

Foreign Trade and International Financial Flows: Implications for Economic Stability in the Selected ECOWAS Countries

T his study investigates the effects of extra-ECOWAS merchandise trade and investment flows on the transmission of business cycles in the selected ECOWAS between 1985 and 2014.  The study finds that total trade and foreign direct investment (FDI) significantly influence the transmission of business cycles with elasticities of 1.1 and 0.7, respectively in the long run. There are little vari...

full text

the effect of economic freedom on entrepreneurship development in selected countries

entrepreneurship is one of the key requirements for economic development. so determinants of the development of entrepreneurial activities has always been of interest to researchers. economic freedom and reducing the size of government is to foster entrepreneurship as substrates. the main objective of this paper is to examine the impact of economic freedom on the development of entrepreneurial ...

full text

Investigating the Relationship between Unemployment Rate and Economic Growth Rate in Iran and Selected Countries

Abstract. According to a rule known as the Okan Law, for one percent decrease (increase) in the unemployment rate, the economic growth rate will increase (decrease) by approximately 0.3 percent. In other words, there is a negative relationship between the unemployment rate and the economic growth rate. This study examines the establishment of this relationship. Contrary to expectations, the rel...

full text

My Resources

Save resource for easier access later

Save to my library Already added to my library

{@ msg_add @}


Journal title

volume 8  issue None

pages  137- 157

publication date 2013-10

By following a journal you will be notified via email when a new issue of this journal is published.

Keywords

Hosted on Doprax cloud platform doprax.com

copyright © 2015-2023