Economic uncertainty and credit crunch - Evidence from an emerging market

Rhoades S., Guner Z.

EMERGING MARKETS FINANCE AND TRADE, cilt.39, sa.4, ss.5-23, 2003 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 39 Sayı: 4
  • Basım Tarihi: 2003
  • Doi Numarası: 10.1080/1540496x.2003.11052547
  • Dergi Adı: EMERGING MARKETS FINANCE AND TRADE
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.5-23
  • Anahtar Kelimeler: bank loans, credit crunch, economic uncertainty
  • Orta Doğu Teknik Üniversitesi Adresli: Evet

Özet

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.