Does globalization affect credit market controls?

Abstract

Using the revised de facto and de jure measures of economic globalization, this paper investigates the effects of globalization on credit market controls. In addition to overall, or aggregate, measures of credit market deregulation, private sector credit, bank ownership, and interest rate controls are also considered. The results indicate that economic globalization promotes credit market deregulation in the 146 countries considered. The findings are robust to a host of tests that include alternative econometric techniques and the effects of differing income levels and regions.