Table 12 Panel regression results for cross-border claims to banks, for period 2000–2016

From: Global liquidity and capital flow regulations

Variables (1) (2) (3) (4) (5)
Stockturnover 0.0013* 0.0016* 0.0001 0.0011* 0.0029***
  (0.0007) (0.0009) (0.0007) (0.0006) (0.0008)
VIX CBOE − 0.0144*** − 0.0156*** − 0.0167*** − 0.0146*** − 0.0104***
  (0.0029) (0.0029) (0.0029) (0.0029) (0.0031)
Δ Govexp − 0.3937 − 0.3850 − 0.4889 − 0.4027 − 0.3305
  (0.4338) (0.4226) (0.4252) (0.4258) (0.4226)
Δ GovDEBT − 0.0021* − 0.0021* − 0.0024* − 0.0023* − 0.0026**
  (0.0012) (0.0012) (0.0012) (0.0012) (0.0012)
Ln GDPdeflator − 0.0430** − 0.0624*** − 0.0606*** − 0.0438** − 0.0616***
  (0.0198) (0.0202) (0.0201) (0.0193) (0.0200)
Ln Govrevenue 0.0818 0.2009 0.1687 0.1194 0.2084
  (0.1571) (0.1547) (0.1532) (0.1526) (0.1547)
Δ M2 (US) 0.0119*** 0.0129*** 0.0114*** 0.0111*** 0.0141***
  (0.0041) (0.0041) (0.0041) (0.0041) (0.0041)
Δ Inflation − 0.0135* − 0.0142** − 0.0150** − 0.0138** − 0.0121*
  (0.0070) (0.0068) (0.0069) (0.0069) (0.0068)
L1. CURRENT ACCOUNT − 0.0035 − 0.0041 − 0.0027 − 0.0023 − 0.0039
  (0.0045) (0.0050) (0.0046) (0.0046) (0.0045)
FINANCIAL MPI − 0.1200*** − 0.0845*** − 0.0932*** − 0.1252*** − 0.0940***
  (0.0307) (0.0326) (0.0323) (0.0303) (0.0314)
Chinn-Ito Index 0.0247    − 0.0184 − 0.0184
  (0.0332)    (0.0133) (0.0133)
US financial openness index   0.0080***    
   (0.0023)    
UK financial openness index    0.0152***   
    (0.0045)   
Δ REER (UK)     − 0.0066*  
     (0.0037)  
ROE (US)      0.0214***
      (0.0058)
Constant − 0.2869 − 1.1805* − 1.6416** − 0.2768 − 0.9797*
  (0.5704) (0.6044) (0.6871) (0.5501) (0.5793)
Country fixed effect Y Y Y Y Y
Observations 1739 1788 1788 1788 1788
R-squared 0.0119 0.0223 0.0209 0.0148 0.0214
Number of countries 109 112 112 112 112
  1. Dependent variable: Per cent Change in cross-border claims on banks (Per cent Change in BIS Locational Cross-Border Claims on Banks, exchange rate adjusted, Table A6). Per cent Change (%ΔX) in Claims on banks is calculated by using the formula (Xafter - Xbefore)/Xbefore. FINANCIAL Financial Institution-Targeted Instruments (0–10) represent a sum of individual instruments [DP + CTC + LEV + SIFI + INTER + CONC + FC + RR_REV + CG + TAX]. Chinn-Ito Index is an Index measuring a country’s degree of capital account openness over 2000–2014. US, UK Financial freedom Index—financial freedom is a measure of banking security as well as a measure of independence from government control. Δ REER (US)—per cent change in Real Effective Exchange Rates. ROE (US)—Return On Equity. Robust standard errors are reported in parentheses and indicate significance at the 1% ***p < 0.01, at the 5% **p < 0.05, and at the 10% *p < 0.1, respectively