International financial integration and financial stress of emerging market economies: The role of institutional quality

IF 5.6 2区经济学 Q1 BUSINESS, FINANCE Emerging Markets Review Pub Date : 2024-10-16 DOI:10.1016/j.ememar.2024.101214

Sook-Rei Tan , Xiu Wei Yeap , Changtai Li

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Abstract

In the wake of unprecedented financial liberalization policies adopted by Emerging Market Economies (EMEs) since the late 20th century, their integration into global financial markets has brought forth both opportunities and challenges. This paper endeavors to assess the intricate relationship between international financial integration (IFI) and financial stress in EMEs, focusing on the potential moderating effect of institutional quality. Addressing key questions, it examines how various IFI indicators impact financial stress and evaluates the role of different dimensions of institutional quality in influencing this relationship. Using a Financial Stress Index (FSI) and employing the panel threshold regression technique, the study unveils significant threshold effects of institutional quality on the IFI-FSI nexus, with variations across different institutional factors. This study underscores the vital need for policymakers to identify threshold levels in institutional quality indicators to strike a balance between attracting investments and preventing unwarranted financial distress.

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国际金融一体化与新兴市场经济体的金融压力：机构质量的作用

自 20 世纪末以来，新兴市场经济体（EMEs）采取了前所未有的金融自由化政策，在融入全球金融市场的同时，也带来了机遇和挑战。本文致力于评估国际金融一体化（IFI）与新兴市场经济体金融压力之间错综复杂的关系，重点关注制度质量的潜在调节作用。针对关键问题，本文研究了各种 IFI 指标如何影响金融压力，并评估了制度质量的不同维度在影响这种关系中的作用。研究使用金融压力指数（FSI）和面板阈值回归技术，揭示了机构质量对 IFI-FSI 关系的显著阈值效应，不同机构因素之间存在差异。这项研究强调，决策者亟需确定机构质量指标的门槛水平，以便在吸引投资和防止不必要的金融困境之间取得平衡。

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来源期刊

Emerging Markets Review Multiple-

CiteScore

7.10

自引率

4.20%

发文量

审稿时长

100 days

期刊介绍： The intent of the editors is to consolidate Emerging Markets Review as the premier vehicle for publishing high impact empirical and theoretical studies in emerging markets finance. Preference will be given to comparative studies that take global and regional perspectives, detailed single country studies that address critical policy issues and have significant global and regional implications, and papers that address the interactions of national and international financial architecture. We especially welcome papers that take institutional as well as financial perspectives.