Corruption, nonperforming loans, and economic growth: International evidence

This paper explores the impact of corruption on both the banking sector and economic growth; we determine the impact using aggregate data from the World Bank covering 120 countries over the period 2004–2017. The results of 3SLS regressions show that the relationship between corruption and the ratio...

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Autores principales:	Tran Hung Son, Nguyen Thanh Liem, Nguyen Vinh Khuong
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2020
Materias:	corruption nonperforming loans banking economic growth 3sls Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/321373ffa44a4a5daf00d8025b1e2a5c
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spelling	oai:doaj.org-article:321373ffa44a4a5daf00d8025b1e2a5c2021-12-02T18:21:51ZCorruption, nonperforming loans, and economic growth: International evidence2331-197510.1080/23311975.2020.1735691https://doaj.org/article/321373ffa44a4a5daf00d8025b1e2a5c2020-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2020.1735691https://doaj.org/toc/2331-1975This paper explores the impact of corruption on both the banking sector and economic growth; we determine the impact using aggregate data from the World Bank covering 120 countries over the period 2004–2017. The results of 3SLS regressions show that the relationship between corruption and the ratio of nonperforming loans was positive, thus deteriorating the soundness of the banking system. In this study, we also find evidence that banking system is a channel that transfers the impact of corruption on economic growth: Corruption leads to higher levels of nonperforming loans in the banking sector; as a result, it decreases economic growth. The findings survive a battery of robustness tests, including alternative corruption measurement and System Generalized Method of Moments regression for dynamic models with an interaction term.Tran Hung SonNguyen Thanh LiemNguyen Vinh KhuongTaylor & Francis Grouparticlecorruptionnonperforming loansbankingeconomic growth3slsBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 7, Iss 1 (2020)
institution	DOAJ
collection	DOAJ
language	EN
topic	corruption nonperforming loans banking economic growth 3sls Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	corruption nonperforming loans banking economic growth 3sls Business HF5001-6182 Management. Industrial management HD28-70 Tran Hung Son Nguyen Thanh Liem Nguyen Vinh Khuong Corruption, nonperforming loans, and economic growth: International evidence
description	This paper explores the impact of corruption on both the banking sector and economic growth; we determine the impact using aggregate data from the World Bank covering 120 countries over the period 2004–2017. The results of 3SLS regressions show that the relationship between corruption and the ratio of nonperforming loans was positive, thus deteriorating the soundness of the banking system. In this study, we also find evidence that banking system is a channel that transfers the impact of corruption on economic growth: Corruption leads to higher levels of nonperforming loans in the banking sector; as a result, it decreases economic growth. The findings survive a battery of robustness tests, including alternative corruption measurement and System Generalized Method of Moments regression for dynamic models with an interaction term.
format	article
author	Tran Hung Son Nguyen Thanh Liem Nguyen Vinh Khuong
author_facet	Tran Hung Son Nguyen Thanh Liem Nguyen Vinh Khuong
author_sort	Tran Hung Son
title	Corruption, nonperforming loans, and economic growth: International evidence
title_short	Corruption, nonperforming loans, and economic growth: International evidence
title_full	Corruption, nonperforming loans, and economic growth: International evidence
title_fullStr	Corruption, nonperforming loans, and economic growth: International evidence
title_full_unstemmed	Corruption, nonperforming loans, and economic growth: International evidence
title_sort	corruption, nonperforming loans, and economic growth: international evidence
publisher	Taylor & Francis Group
publishDate	2020
url	https://doaj.org/article/321373ffa44a4a5daf00d8025b1e2a5c
work_keys_str_mv	AT tranhungson corruptionnonperformingloansandeconomicgrowthinternationalevidence AT nguyenthanhliem corruptionnonperformingloansandeconomicgrowthinternationalevidence AT nguyenvinhkhuong corruptionnonperformingloansandeconomicgrowthinternationalevidence
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Corruption, nonperforming loans, and economic growth: International evidence

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