Transmission of the Global Bank Liquidity Shock: Evidence from the US Foreign Bank Loans to Southeast Asian Economies

Authors

  • Agus Salim Department of Development Economics, Faculty of Economics and Business, Universitas Ahmad Dahlan, Special Regional of Yogyakarta https://orcid.org/0000-0001-9592-7295
  • Ignatius Abasimi School of Economics, Shandong University, Shandong, Jinan
  • Dini Yuniarti Department of Development Economics, Faculty of Economics and Business, Universitas Ahmad Dahlan, Special Regional of Yogyakarta https://orcid.org/0000-0002-4482-4998
  • Mahrus Lutfi Adi Kurniawan Department of Development Economics, Faculty of Economics and Business, Universitas Ahmad Dahlan, Special Regional of Yogyakarta https://orcid.org/0000-0002-9329-6386
  • Suripto Suripto Department of Development Economics, Faculty of Economics and Business, Universitas Ahmad Dahlan, Special Regional of Yogyakarta
  • Naveed Aslam Department of Agronomy, Faculty of Agriculture, University of Poonch Rawalakot, Azad Kashmir
  • Sunil Kumar Chaudhary Nepal Institute for International Cooperation and Engagement https://orcid.org/0000-0002-8451-1056

DOI:

https://doi.org/10.18196/jerss.v7i1.16975

Keywords:

Foreign Bank Flow, Financial Crisis Contagion, Southeast Asia, Exchange Rate, System-GMM

Abstract

The empirical debate of foreign bank loans as an international intermediation transfer from industrialized to developing market economies, which concentrated on expenses and advantages, has continued. Our manuscript analyzes the determinants of US bank loans in selected Southeast Asian emerging markets. The most critical variables, based on the statistical approach built around the system-GMM, have a considerable effect on the growth rates of the origin and destination countries. Remarkably, the exchange rate significantly becomes a risk indicator which decrease the US bank flow. Finally, shock in the US economy has been transmitted to the Southeast Asian economies through foreign bank flow.

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Published

2023-02-23

How to Cite

Salim, A., Abasimi, I., Yuniarti, D., Kurniawan, M. L. A., Suripto, S., Aslam, N., & Chaudhary, S. K. (2023). Transmission of the Global Bank Liquidity Shock: Evidence from the US Foreign Bank Loans to Southeast Asian Economies. Journal of Economics Research and Social Sciences, 7(1), 1–11. https://doi.org/10.18196/jerss.v7i1.16975

Issue

Vol. 7 No. 1: February 2023

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Articles

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