How does financial market structure affect the impact of a banking crisis?

Michiel Bijlsma; Andrei Dubovik; B. Straathof

doi:10.1016/j.econlet.2015.08.019

How does financial market structure affect the impact of a banking crisis?

Michiel Bijlsma, Andrei Dubovik, B. Straathof

Research output: Contribution to journal › Article › Scientific › peer-review

Abstract

We find a more negative impact of a financial crisis on growth of industrial sectors in developed countries that are more dependent on external finance, also when controlling for omitted variables by including country–time, industry–time and country–industry fixed effects. This differential effect is stronger in countries with a more leveraged financial sector, while it is unaffected by the depth of financial markets.

Original language	English
Pages (from-to)	144-147
Number of pages	3
Journal	Economics Letters
Volume	135
DOIs	https://doi.org/10.1016/j.econlet.2015.08.019
Publication status	Published - Oct 2015
Externally published	Yes

Keywords

financial crisis
industrial growth
credit crunch
leverage

Access to Document

10.1016/j.econlet.2015.08.019

Cite this

@article{beb9367796ec4cbf9bfe76df5f859624,

title = "How does financial market structure affect the impact of a banking crisis?",

abstract = "We find a more negative impact of a financial crisis on growth of industrial sectors in developed countries that are more dependent on external finance, also when controlling for omitted variables by including country–time, industry–time and country–industry fixed effects. This differential effect is stronger in countries with a more leveraged financial sector, while it is unaffected by the depth of financial markets.",

keywords = "financial crisis, industrial growth, credit crunch, leverage",

author = "Michiel Bijlsma and Andrei Dubovik and B. Straathof",

year = "2015",

month = oct,

doi = "10.1016/j.econlet.2015.08.019",

language = "English",

volume = "135",

pages = "144--147",

journal = "Economics Letters",