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In the contemporary world bustling with global trade, a natural disaster or financial crisis in one country (or region …
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In this paper, I analyze how corruption in one country may be affected by its neighbors' corruption. It seeks to … explain why corruption is perpetuating in large geographical areas populated by developing countries despite anticorruption … efforts made in the single country. In our empirical approach, we capture the spatial dependency by regional corruption. Three …
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The theoretical literature remains inconclusive on whether changes in bank exposure towards the domestic sovereign have an adverse effect on the sovereign risk position via a diabolic loop in the sovereign-bank nexus or reduce perceived default risk by acting as a disciplinary device for the...
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