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We document a strong political cycle in bank credit and industry outcomes in Turkey. In line with theories of tactical redistribution, state-owned banks systematically adjust their lending around local elections compared with private banks in the same province based on electoral competition and...
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This paper analyses the effects of fiscal shocks using a two-country macroeconomic model for output, labour input, government spending and relative prices which provides the orthogonality restrictions for obtaining the structural shocks. Dynamic simulation techniques are then applied, in...
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. (2017) our main findings are the following: i) countries experiencing a high degree of corruption, a high risk to investment … evidence for a threshold effect on the relationship between investment profile-RER, corruption-RER and political instability …-RER. Specifically, political instability and corruption adversely affect real exchange rate especially when they exceed the threshold …
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The aim of this paper is to provide new empirical evidence on the impact of international financial integration on the long-run Real Exchange Rate (RER) in 39 developing countries belonging to three different geographical regions (Latin America, Asia and MENA). It covers the period 1979-2004,...
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