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Does globalization affect credit market controls?

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  • Batten, Jonathan A.
  • Bilgin, Mehmet Huseyin
  • Demir, Ender
  • Gozgor, Giray

Abstract

Using the revised de facto and de jure measures of economic globalization, this paper investigates the effects of globalization on credit market controls. In addition to overall, or aggregate, measures of credit market deregulation, private sector credit, bank ownership, and interest rate controls are also considered. The results indicate that economic globalization promotes credit market deregulation in the 146 countries considered. The findings are robust to a host of tests that include alternative econometric techniques and the effects of differing income levels and regions.

Suggested Citation

  • Batten, Jonathan A. & Bilgin, Mehmet Huseyin & Demir, Ender & Gozgor, Giray, 2023. "Does globalization affect credit market controls?," International Review of Economics & Finance, Elsevier, vol. 85(C), pages 21-43.
    • Handle: RePEc:eee:reveco:v:85:y:2023:i:c:p:21-43
    DOI: 10.1016/j.iref.2022.11.012
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    More about this item

    Keywords

    Credit market deregulation; Private sector credits; Ownership of banks; Interest rate controls; Financial globalization; Trade globalization; Panel data estimation techniques;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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