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dc.contributor.authorCaballero, Julianen_US
dc.date.accessioned2010-11-17en_US
dc.date.accessioned2012-09-21T11:55:25Z-
dc.date.available2012-09-21T11:55:25Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/64097-
dc.description.abstractThis paper asks if bonanzas (i.e. surges) in net capital flows are associated with a higher likelihood of banking crises and whether this association is necessarily through a lending boom mechanism. Using a new database covering over one hundred countries during 1973-2008, the paper shows that previous-year bonanzas in net capital flows are associated with systemic banking crises, even in the absence of a lending boom. Given a baseline bonanza, the odds of a crisis the following year are up to three times higher. The more extreme is the windfall of capital relative to trend (i.e. an intense bonanza), the larger is this risk and a crisis becomes seven times more likely. The correlation of mild bonanzas with crises is found to be necessarily associated with a lending boom; this is not the case for intense bonanzas, suggesting the existence of a different mechanism when the windfall of capital is too large. For developing countries it is found that intense bonanzas are associated with even higher odds of future crises. When decomposing flows in FDI, portfolio-equity and debt, it is found that bonanzas in both debt and portfolio-equity flows are correlated with future crises; however, portfolio flows are the ones associated with the largest increase in the likelihood of a crisis.en_US
dc.language.isoengen_US
dc.publisherSanta Cruz Inst. for International Economics Santa Cruz, Calif.en_US
dc.relation.ispartofseriesWorking Papers, Santa Cruz Institute for International Economics 10-23en_US
dc.subject.jelE44en_US
dc.subject.jelE51en_US
dc.subject.jelF21en_US
dc.subject.jelF32en_US
dc.subject.jelF34en_US
dc.subject.jelG01en_US
dc.subject.ddc330en_US
dc.subject.keywordBanking crisesen_US
dc.subject.keywordFinancial crisesen_US
dc.subject.keywordCapital flowsen_US
dc.subject.keywordCredit boomsen_US
dc.subject.keywordLending boomsen_US
dc.titleDo surges in international capital flows influence the likelihood of banking crises? Cross-country evidence on capital flows bonanzas and bonanza-boom-bust cyclesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn640054390en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Working Papers, Santa Cruz Institute for International Economics, UC Santa Cruz

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