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 languageEnglish
Pages (from-to)144-147
Number of pages3
JournalEconomics Letters
Volume135
DOIs
Publication statusPublished - Oct 2015
Externally publishedYes

Keywords

  • financial crisis
  • industrial growth
  • credit crunch
  • leverage

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