Government failures and non-performing loans in European countries: a spatial approach
Purpose The purpose is to analyze the spatially varying impacts of corruption and public debt as % of GDP (proxies of government failures) on non-performing loans (NPLs) in European countries; comparing two periods: one prior to the crisis of 2007 and another one after that. The authors first modele...
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ftunimessinairis:oai:iris.unime.it:11570/3205684 2024-02-11T10:05:14+01:00 Government failures and non-performing loans in European countries: a spatial approach Ofria, Ferdinando Mucciardi, Massimo Ofria, Ferdinando Mucciardi, Massimo 2022 STAMPA https://hdl.handle.net/11570/3205684 https://doi.org/10.1108/JES-01-2021-0010 https://www.emerald.com/insight/content/doi/10.1108/JES-01-2021-0010/full/html eng eng Emerald Publishing Limited info:eu-repo/semantics/altIdentifier/wos/WOS:000669542500001 volume:Volume 49 issue:5 firstpage:876 lastpage:887 numberofpages:12 journal:JOURNAL OF ECONOMIC STUDIES https://hdl.handle.net/11570/3205684 doi:10.1108/JES-01-2021-0010 info:eu-repo/semantics/altIdentifier/scopus/2-s2.0-85133150440 https://www.emerald.com/insight/content/doi/10.1108/JES-01-2021-0010/full/html info:eu-repo/semantics/openAccess Non-performing loans (NPLs) GWR model Bank credit risk Corruption Public debt European Union countries European crisis Financial crisis info:eu-repo/semantics/article 2022 ftunimessinairis https://doi.org/10.1108/JES-01-2021-0010 2024-01-24T17:45:11Z Purpose The purpose is to analyze the spatially varying impacts of corruption and public debt as % of GDP (proxies of government failures) on non-performing loans (NPLs) in European countries; comparing two periods: one prior to the crisis of 2007 and another one after that. The authors first modeled the NPLs with an ordinary lest square (OLS) regression and found clear evidence of spatial instability in the distribution of the residuals. As a second step, the authors utilized the geographically weighted regression (GWR) to explore regional variations in the relationship between NPLs and the proxies of “Government failures”. Design/methodology/approach The authors first modeled the NPL with an OLS regression and found clear evidence of spatial instability in the distribution of the residuals. As a second step, the author utilized the Geographically Weighted Regression (GWR) (Fotheringham et al., 2002) to explore regional variations in the relationship between NPLs and proxies of “Government failures” (corruption and public debt as % of GDP). Findings The results confirm that corruption and public debt as % of GDP, after the crisis of 2007, have affected significantly on NPLs of the EU countries and the following countries neighboring the EU: Switzerland, Iceland, Norway, Montenegro, and Turkey. Originality/value In a spatial prospective, unprecedented in the literature, this research focused on the impact of corruption and public debt as % of GDP on NPLs in European countries. The positive correlation, as expected, between public debt and NPLs highlights that fiscal problems in Eurozone countries have led to an important rise of problem loans. The impact of institutional corruption on NPLs reports that the higher the corruption, the higher is the level of NPLs. Article in Journal/Newspaper Iceland Università degli Studi di Messina: IRIS Norway Journal of Economic Studies ahead-of-print ahead-of-print |
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Università degli Studi di Messina: IRIS |
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English |
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Non-performing loans (NPLs) GWR model Bank credit risk Corruption Public debt European Union countries European crisis Financial crisis |
spellingShingle |
Non-performing loans (NPLs) GWR model Bank credit risk Corruption Public debt European Union countries European crisis Financial crisis Ofria, Ferdinando Mucciardi, Massimo Government failures and non-performing loans in European countries: a spatial approach |
topic_facet |
Non-performing loans (NPLs) GWR model Bank credit risk Corruption Public debt European Union countries European crisis Financial crisis |
description |
Purpose The purpose is to analyze the spatially varying impacts of corruption and public debt as % of GDP (proxies of government failures) on non-performing loans (NPLs) in European countries; comparing two periods: one prior to the crisis of 2007 and another one after that. The authors first modeled the NPLs with an ordinary lest square (OLS) regression and found clear evidence of spatial instability in the distribution of the residuals. As a second step, the authors utilized the geographically weighted regression (GWR) to explore regional variations in the relationship between NPLs and the proxies of “Government failures”. Design/methodology/approach The authors first modeled the NPL with an OLS regression and found clear evidence of spatial instability in the distribution of the residuals. As a second step, the author utilized the Geographically Weighted Regression (GWR) (Fotheringham et al., 2002) to explore regional variations in the relationship between NPLs and proxies of “Government failures” (corruption and public debt as % of GDP). Findings The results confirm that corruption and public debt as % of GDP, after the crisis of 2007, have affected significantly on NPLs of the EU countries and the following countries neighboring the EU: Switzerland, Iceland, Norway, Montenegro, and Turkey. Originality/value In a spatial prospective, unprecedented in the literature, this research focused on the impact of corruption and public debt as % of GDP on NPLs in European countries. The positive correlation, as expected, between public debt and NPLs highlights that fiscal problems in Eurozone countries have led to an important rise of problem loans. The impact of institutional corruption on NPLs reports that the higher the corruption, the higher is the level of NPLs. |
author2 |
Ofria, Ferdinando Mucciardi, Massimo |
format |
Article in Journal/Newspaper |
author |
Ofria, Ferdinando Mucciardi, Massimo |
author_facet |
Ofria, Ferdinando Mucciardi, Massimo |
author_sort |
Ofria, Ferdinando |
title |
Government failures and non-performing loans in European countries: a spatial approach |
title_short |
Government failures and non-performing loans in European countries: a spatial approach |
title_full |
Government failures and non-performing loans in European countries: a spatial approach |
title_fullStr |
Government failures and non-performing loans in European countries: a spatial approach |
title_full_unstemmed |
Government failures and non-performing loans in European countries: a spatial approach |
title_sort |
government failures and non-performing loans in european countries: a spatial approach |
publisher |
Emerald Publishing Limited |
publishDate |
2022 |
url |
https://hdl.handle.net/11570/3205684 https://doi.org/10.1108/JES-01-2021-0010 https://www.emerald.com/insight/content/doi/10.1108/JES-01-2021-0010/full/html |
geographic |
Norway |
geographic_facet |
Norway |
genre |
Iceland |
genre_facet |
Iceland |
op_relation |
info:eu-repo/semantics/altIdentifier/wos/WOS:000669542500001 volume:Volume 49 issue:5 firstpage:876 lastpage:887 numberofpages:12 journal:JOURNAL OF ECONOMIC STUDIES https://hdl.handle.net/11570/3205684 doi:10.1108/JES-01-2021-0010 info:eu-repo/semantics/altIdentifier/scopus/2-s2.0-85133150440 https://www.emerald.com/insight/content/doi/10.1108/JES-01-2021-0010/full/html |
op_rights |
info:eu-repo/semantics/openAccess |
op_doi |
https://doi.org/10.1108/JES-01-2021-0010 |
container_title |
Journal of Economic Studies |
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ahead-of-print |
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ahead-of-print |
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1790602138699694080 |