Economic uncertainty and credit crunch - Evidence from an emerging market

Date

2003-07-01

Author

Rhoades, SD
Güner, Zehra Nuray

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Using both univariate and multivariate analyses, this paper attempts to determine whether a credit crunch occurred in the Turkish economy during the 1990s. It also addresses the question of whether this credit crunch was a supply-side- or a demand-side-originated phenomenon. Economic uncertainty is proxied by unanticipated inflation. The analyses are carried out by controlling for political uncertainty as well. The results indicate that economic uncertainty has a significantly negative impact on the supply of and the demand for loans. Also, there is evidence that a supply-side-originated credit crunch occurred in the Turkish economy.

Subject Keywords

General Economics, Econometrics and Finance, Finance

URI

https://hdl.handle.net/11511/35197

Journal

EMERGING MARKETS FINANCE AND TRADE

DOI

https://doi.org/10.1080/1540496x.2003.11052547

Collections

Department of Business Administration, Article

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Citation Formats

S. Rhoades and Z. N. Güner, “Economic uncertainty and credit crunch - Evidence from an emerging market,” EMERGING MARKETS FINANCE AND TRADE, pp. 5–23, 2003, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/35197.