How international capital inflows and domestic financial institutional development affect domestic credit: Evidence from developing countries

This study examines the effects of international capital flows segmented by borrower type (i.e., banks versus other types of financial institutions) and the development of domestic financial institutions on the level of domestic credit in 74 developing countries between 2005 and 2017. Through dynami...

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Autor principal:	Subroto Rapih
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2021
Materias:	international capital inflows development of financial institutions domestic credit developing countries Finance HG1-9999 Economic theory. Demography HB1-3840
Acceso en línea:	https://doaj.org/article/0ee2225f7741467e811a0893e9349248
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spelling	oai:doaj.org-article:0ee2225f7741467e811a0893e93492482021-12-01T14:41:00ZHow international capital inflows and domestic financial institutional development affect domestic credit: Evidence from developing countries2332-203910.1080/23322039.2021.2007614https://doaj.org/article/0ee2225f7741467e811a0893e93492482021-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23322039.2021.2007614https://doaj.org/toc/2332-2039This study examines the effects of international capital flows segmented by borrower type (i.e., banks versus other types of financial institutions) and the development of domestic financial institutions on the level of domestic credit in 74 developing countries between 2005 and 2017. Through dynamic panel data estimation, this study yields four main findings. First, domestic credit is closely associated with international capital inflows to the banking sector, although the increase of foreign capital inflows to financial institutions other than banks harms domestic credit. Second, the development of domestic financial institutions is essential for increasing domestic credit in developing countries. Third, increasing international capital inflows to the banking sector will stimulate the level of domestic credit in countries with less developed domestic financial institutions and vice versa. Fourth, greater uncertainty in global economic and financial market conditions suppresses domestic credit in developing countries.Subroto RapihTaylor & Francis Grouparticleinternational capital inflowsdevelopment of financial institutionsdomestic creditdeveloping countriesFinanceHG1-9999Economic theory. DemographyHB1-3840ENCogent Economics & Finance, Vol 9, Iss 1 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	international capital inflows development of financial institutions domestic credit developing countries Finance HG1-9999 Economic theory. Demography HB1-3840
spellingShingle	international capital inflows development of financial institutions domestic credit developing countries Finance HG1-9999 Economic theory. Demography HB1-3840 Subroto Rapih How international capital inflows and domestic financial institutional development affect domestic credit: Evidence from developing countries
description	This study examines the effects of international capital flows segmented by borrower type (i.e., banks versus other types of financial institutions) and the development of domestic financial institutions on the level of domestic credit in 74 developing countries between 2005 and 2017. Through dynamic panel data estimation, this study yields four main findings. First, domestic credit is closely associated with international capital inflows to the banking sector, although the increase of foreign capital inflows to financial institutions other than banks harms domestic credit. Second, the development of domestic financial institutions is essential for increasing domestic credit in developing countries. Third, increasing international capital inflows to the banking sector will stimulate the level of domestic credit in countries with less developed domestic financial institutions and vice versa. Fourth, greater uncertainty in global economic and financial market conditions suppresses domestic credit in developing countries.
format	article
author	Subroto Rapih
author_facet	Subroto Rapih
author_sort	Subroto Rapih
title	How international capital inflows and domestic financial institutional development affect domestic credit: Evidence from developing countries
title_short	How international capital inflows and domestic financial institutional development affect domestic credit: Evidence from developing countries
title_full	How international capital inflows and domestic financial institutional development affect domestic credit: Evidence from developing countries
title_fullStr	How international capital inflows and domestic financial institutional development affect domestic credit: Evidence from developing countries
title_full_unstemmed	How international capital inflows and domestic financial institutional development affect domestic credit: Evidence from developing countries
title_sort	how international capital inflows and domestic financial institutional development affect domestic credit: evidence from developing countries
publisher	Taylor & Francis Group
publishDate	2021
url	https://doaj.org/article/0ee2225f7741467e811a0893e9349248
work_keys_str_mv	AT subrotorapih howinternationalcapitalinflowsanddomesticfinancialinstitutionaldevelopmentaffectdomesticcreditevidencefromdevelopingcountries
_version_	1718404977547804672

How international capital inflows and domestic financial institutional development affect domestic credit: Evidence from developing countries

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