Finance and European regional economy

Research output: Contribution to journalArticlepeer-review

Abstract

This study computes banking risk indexes for European developing countries and analyses the impact of identified risk factors on economic growth across regions and cities. We examine the short-run and long-run behaviours of the series. The results reveal that real gross domestic product (RGDP) per capita co-moves with banking risk. We find that about 17% of focal regions suffer significantly from banking risk shocks. The effect ranges from 0.1% to 0.7%, with a lower magnitude for cities. Banking risk has the most detrimental effects in Russia. Short- and long-run decrements in RGDP range between 0.2% and 0.3% across the panel.
Original languageEnglish
Article number101921
Pages (from-to)1-8
Number of pages8
JournalInternational Review of Financial Analysis
Volume78
DOIs
Publication statusPublished - Nov 2021

Keywords

  • Banking risk
  • Regional RGDP
  • Developing countries
  • Europe

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