Banking on Democracy The Political Economy of International Private Bank Lending in Emerging Markets

Private capital movements have risen in recent decades, and bank flows have been part of this story. Some empirical studies have analysed the political drivers of private international liquidity, but paradoxically very few have looked at the political economy of bank flows. Even less research exists...

Full description

Bibliographic Details
Main Author: Rodríguez, Javier
Other Authors: Santiso, Javier
Format: eBook
Language:English
Published: Paris OECD Publishing 2007
Series:OECD Development Centre Working Papers
Subjects:
Online Access:
Collection: OECD Books and Papers - Collection details see MPG.ReNa
LEADER 01941nma a2200241 u 4500
001 EB001827194
003 EBX01000000000000000993640
005 00000000000000.0
007 cr|||||||||||||||||||||
008 180616 ||| eng
100 1 |a Rodríguez, Javier 
245 0 0 |a Banking on Democracy  |h Elektronische Ressource  |b The Political Economy of International Private Bank Lending in Emerging Markets  |c Javier, Rodríguez and Javier, Santiso 
260 |a Paris  |b OECD Publishing  |c 2007 
300 |a 62 p.  |c 21 x 29.7cm 
653 |a Development 
700 1 |a Santiso, Javier 
041 0 7 |a eng  |2 ISO 639-2 
989 |b OECD  |a OECD Books and Papers 
490 0 |a OECD Development Centre Working Papers 
028 5 0 |a /10.1787/241233837210 
856 4 0 |a oecd-ilibrary.org  |u https://doi.org/10.1787/241233837210  |x Verlag  |3 Volltext 
082 0 |a 333 
520 |a Private capital movements have risen in recent decades, and bank flows have been part of this story. Some empirical studies have analysed the political drivers of private international liquidity, but paradoxically very few have looked at the political economy of bank flows. Even less research exists on the role of politics in explaining cross-border banking movements towards emerging democracies. The present study links compiled indicators on democracy, policy uncertainty and political stability to international bank lending flows from data developed by the BIS. It provides an empirical investigation of the political economy of cross-border bank flows to emerging markets and tries to answer two questions. Do bankers tend to prefer emerging democracies? Do they reward democratic transitions as well as policy and political stability? One of the major findings is that politics do matter, and international banks tend to have political preferences; annual growth in bank flows usually booms in the three years following a democratic transition, especially in Latin America