Government failures and non-performing loans in European countries: a spatial approach

نویسندگان

چکیده

Purpose The purpose is to analyze the spatially varying impacts of corruption and public debt as % GDP (proxies government failures) on non-performing loans (NPLs) in European countries; comparing two periods: one prior crisis 2007 another after that. authors first modeled NPLs with an ordinary lest square (OLS) regression found clear evidence spatial instability distribution residuals. As a second step, utilized geographically weighted (GWR) explore regional variations relationship between proxies “Government failures”. Design/methodology/approach NPL OLS author Geographically Weighted Regression (Fotheringham et al. , 2002) failures” (corruption GDP). Findings results confirm that GDP, 2007, have affected significantly EU countries following neighboring EU: Switzerland, Iceland, Norway, Montenegro, Turkey. Originality/value In prospective, unprecedented literature, this research focused impact countries. positive correlation, expected, highlights fiscal problems Eurozone led important rise problem loans. institutional reports higher corruption, level NPLs.

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ژورنال

عنوان ژورنال: Journal of Economic Studies

سال: 2021

ISSN: ['0144-3585', '1758-7387']

DOI: https://doi.org/10.1108/jes-01-2021-0010