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Globalization, credit information sharing and financial stability in developing countries

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  • Quang Khai Nguyen

    (Ho Chi Minh City Open University)

Abstract

This study investigates the impact of economic and political globalization on financial stability in developing countries. By using data from 108 developing countries from 2012 to 2021, and applying fixed effect and System GMM estimation methods, we provide some important findings. First, we find that economic globalization reduces financial stability but political globalization enhances financial stability in developing countries. Second, we provide strong evidence that credit information sharing plays a crucial role in reducing the negative impact of economic globalization on financial stability and enhancing the positive effect of political globalization on financial stability in developing countries. This study contributes to the ongoing discourse on globalization and financial stability by shedding light on their multifaceted outcomes within developing countries. Furthermore, in the context of endeavors by developing countries to enhance financial stability, our research provides some important implications for these countries to have appropriate policies to achieve their goals.

Suggested Citation

  • Quang Khai Nguyen, 2024. "Globalization, credit information sharing and financial stability in developing countries," Economic Change and Restructuring, Springer, vol. 57(6), pages 1-21, December.
    • Handle: RePEc:kap:ecopln:v:57:y:2024:i:6:d:10.1007_s10644-024-09839-y
    DOI: 10.1007/s10644-024-09839-y
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    More about this item

    Keywords

    Economic globalization; Political globalization; Financial stability; Developing country;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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