Assessing the Robustness of the Relationship Between Financial Reforms and Banking Crises
Pablo Gluzmann (CEDLAS-FCE-UNLP and CONICET) Martin Guzman (Columbia University) - Working Paper #294
This paper provides a novel approach for assessing the robustness of the relationship between dierent types of nancial reforms and banking crises for the period 1973-2005. We document the following facts for emerging economies: (i) liberalizations of capital accounts, securities markets, interest rates, removal of credit controls, barriers to entry, and reduction of state ownership in the banking sector, all are positively associated with a higher frequency of banking crises; (ii) the increase in nancial turbulence is mainly concentrated within a time-window of ve years after the reforms: If a country does not experience a banking crisis within that period, the probability of experiencing a crisis afterwards becomes insignicant; and (iii) the results are robust to the inclusion of all control variables that have been found in the literature as signicant determinants of banking crises.
About the Authors
Initiative for Policy Dialogue (IPD)
Martín Guzmán served as Minister of Economy of the Republic of Argentina (December 2019- July 2022).
He is a Research Scholar at the Columbia University School of Business and Director of the Sovereign Debt Restructuring Program of Columbia’s Initiative for Policy Dialogue. He is the executive director of the academic training program supported by the Institute for New Economic Thinking chaired by Professor Joseph Stiglitz at Columbia University Business School. He is a professor of Money, Credit, and Banking at the National University of La Plata. He has served as editor-in-chief of the Journal of Globalization and Development and is a member of the editorial board.
He is a member of the Pontifical Academy of Social Sciences in the Vatican and a member of the Scientific Board of the Trento Summer School in Adaptive Economic Dynamics at the University of Trento, Italy.
He holds a PhD. In Economics from Brown University, United States (2013). Prior to his doctoral studies, he received a Bachelor’s degree in Economics (2005) and a Master’s degree in Economics (2007) from the National University of La Plata, Argentina.
Pablo Gluzmann is an Assistant Professor at University of La Plata, a Research Fellow at the Consejo Nacional de Investgaciones Científicas y Técnicas (CONICET), and a Senior Fellow at the Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS-FCE-UNLP).
He has published several papers in academic journals as the Journal of Development Economics, Economic Letters, Journal of Income Distribution, World Development, Stata Journal and Económica, as well as several chapters in different books.
He holds a PhD in Economics from University of La Plata.