Taming Financial Development to Reduce Crises

Naceur, Sami Ben; Candelon, Bertrand; Lajaunie, Quentin

doi:10.5089/9781498312011.001

Cited by 4 publications

(2 citation statements)

References 35 publications

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“…Not for Redistribution adaptation by large established institutions and big-tech companies. Not only do fintech firms tend to take on more risks themselves, but they also exert pressure on traditional financial institutions by degrading profitability, loosening lending standards improperly, and increasing risk-taking in operations and transactions (Cornaggia, Wolfe, and Yoo, 2018;FSB, 2019;Baba et al, 2020;An and Rau, 2021;Wang, Liu, and Luo, 2021;Ben Naceur et al, 2023;Haddad and Hornuf, 2023). Furthermore, as shown by recent developments, systemic financial risks can arise from institutions that individually are not systemically important for the financial system.…”

Section: Figure 2 Global Fintech Volume and Financial Stabilitymentioning

confidence: 99%

The Dark Side of the Moon? Fintech and Financial Stability

Cevik

2023

IMF Working Papers

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Section: Figure 2 Global Fintech Volume and Financial Stabilitymentioning

confidence: 99%

The Dark Side of the Moon? Fintech and Financial Stability

Cevik

2023

IMF Working Papers

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“…On another note, Naceur et al (2019) have shown that the institutional dimension (rather than the market dimension) of financial development promotes financial stability, particularly in emerging markets and low-income countries. Thus, by contributing to greater financial stability, financial development help dampen the effects of external shocks on the economy and contribute to greater stability of services export revenue.…”

Section: Services Export Revenue Volatilitymentioning

confidence: 99%

Services export diversification and services export revenue stability: does trade openness matter?

Gnangnon

2021

ITPD

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PurposeThe international trade literature has established that export product diversification lowers export product revenue instability. The current analysis investigates whether this finding carries over services exports.Design/methodology/approachThe empirical analysis covers a sample of 152 countries over the period 1980–2014 and employs the two-step system generalized method of moments (GMM) approach.FindingsThe empirical findings indicate that services export diversification reduces services export revenue instability both over the full sample as well as over sub-samples of high-income countries (HICs), least developed countries (LDCs) as well as developing countries (i.e. non-HICs) that are not LDCs. HICs appear to experience a higher positive effect of services export diversification on services export revenue instability than in developing countries. The analysis also shows that countries that further open-up to international trade enjoy a greater reducing effect of services export diversification on the instability of services export revenue.Research limitations/implicationsThis analysis, therefore, adds to the existing studies on the relationship between export product diversification and the instability of revenue derived from goods exports by focusing on the services export side. An important message from the analysis is that countries that diversify their services export basket enjoy lower services export revenue instability when they further integrate into the world trade market.Practical implicationsThis study highlights the importance of services export diversification, including for stabilizing services export revenue to services traders. Diversifying services export items, including across traditional and modern services sectors involves the implementation of a wide range of policies and measures, of which the liberalization of the services sectors through reduction and eventually the elimination of services trade barriers; the improvement of the business environment and the development of domestic financial markets (see for example, Hoekman, 2017). It could be interesting that another study consider policies and measures that could promote services export diversification.Originality/valueTo the best of the authors’ knowledge, this is the first time this topic is being addressed, including empirically.

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