Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/110875
Authors: 
Eppinger, Peter
Potrafke, Niklas
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper 5374
Abstract: 
We investigate whether globalization influenced credit market deregulation over the period 1970-2010. Globalization is measured by the KOF indices of globalization. Credit market deregulation is measured by the credit market freedom indicators of the Fraser Institute. The results from both cross-sectional and panel regressions using ordinary least squares indicate a positive correlation between globalization and credit market deregulation. We account for reverse causality by using predicted trade openness as an instrumental variable and show that this approach gives rise to different conclusions. Two-stage least squares estimations do not show that globalization had a causal influence on credit market deregulation.
Subjects: 
globalization
credit market deregulation
instrumental variables
JEL: 
F65
F68
G18
G28
F42
C26
Document Type: 
Working Paper

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