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Journal of Economic Structures

The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)

Table 4 Effect of political and economic risks on banking sector risk-taking in the different regions (2009–2017)

From: Does the country’s political and economic risks trigger risk-taking behavior in the banking sector: a new insight from regional study

Variables

Sub-Saharan Africa

Middle East and North Africa

Europe and Central Asia

Latin America and Caribbean

South and East Asia and Pacific

OECD high income

All investigated countries

Lag [σ(ROA)]

0.873***

0.802***

0.867***

0.831***

0.847**

0.825***

0.824***

(3.24)

(2.91)

(5.54)

(3.70)

(2.24)

(3.42)

(4.66)

RQ/RA

− 0.001

− 0.003

− 0.002

− 0.001***

− 0.007*

− 0.001***

− 0.001

(− 0.94)

(− 1.28)

(− 1.27)

(− 2.95)

(− 1.68)

(− 4.07)

(− 0.76)

NPL/GL

0.004**

0.003*

0.006***

0.002

0.002***

0.003***

0.002***

(2.15)

(1.68)

(3.31)

(0.86)

(3.28)

(4.21)

(3.18)

C/I

0.005**

0.002***

0.003

0.006**

0.002*

0.004**

0.005*

(2.12)

(4.57)

(1.11)

(2.10)

(1.96)

(2.12)

(1.67)

LI

− 0.001**

− 0.005**

− 0.002***

− 0.001***

− 0.001

− 0.002***

− 0.002**

(− 2.48)

(− 2.06)

(− 3.19)

(− 3.51)

(− 1.03)

(− 4.03)

(− 2.12)

NI/TI

− 0.012**

− 0.003

− 0.003***

− 0.002

− 0.002**

− 0.006***

− 0.001

(− 2.07)

(− 0.47)

(− 3.70)

(− 0.44)

(− 2.12)

(− 3.48)

(− 0.46)

DC

0.001

0.003**

0.003

0.004

0.005***

0.019***

0.003**

(1.47)

(2.05)

(1.03)

(0.69)

(4.25)

(3.93)

(2.09)

DI

0.031

0.195***

0.158

0.123**

0.176

0.197*

0.007

(0.39)

(3.20)

(1.12)

(2.01)

(0.63)

(1.76)

(0.14)

PRI

− 0.012***

− 0.013***

− 0.014***

− 0.011**

− 0.012**

− 0.017***

− 0.017***

(− 2.05)

(− 2.78)

(− 4.55)

(− 2.55)

(− 2.02)

(− 3.18)

(− 4.64)

ERI

− 0.011***

− 0.013**

− 0.012*

− 0.016***

− 0.015*

− 0.023***

− 0.041**

(− 2.79)

(− 2.16)

(− 1.84)

(− 6.09)

(− 1.68)

(− 5.22)

(− 2.51)

Constant

0.711

0.177

0.069*

0.385

0.472***

0.841

0.801***

(1.28)

(0.87)

(1.67)

(0.92)

(5.26)

(1.27)

(3.37)

Time dummy

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Hansen-test

(0.536)

(0.527)

(0.478)

(0.624)

(0.435)

(0.426)

(0.454)

Sargan-test

(0.442)

(0.356)

(0.219)

(0.425)

(0.226)

(0.611)

(0.233)

AR (2)

(0.476)

(0.469)

(0.526)

(0.522)

(0.595)

(0.535)

(0.575)

  1. The Z-statistics are reported in parentheses
  2. The symbols *, ** and *** indicate statistical significance at the 10%, 5% and 1% levels, respectively
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