Banking crises and human rights

ABSTRACT

We examine the effect of banking crises on a country’s protection of basic human rights. Our results indicate that banking crises have a causal, substantive and robust negative effect on human rights, particularly in nondemocracies. This adds to our understanding of how economic shocks can politically destabilize countries.

KEYWORDS:

• Human rights
• banking crises
• endogenous treatment model

JEL CLASSIFICATION:

• D74
• D78
• H10
• K00

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

¹ Cameron and Trivedi (2005, 883) thoroughly discuss the endogenous treatment model. Gutmann, Neuenkirch, and Neumeier (2016) also describe the estimator in detail and use it to identify causal effects of US sanctions on human rights.

Additional information

Funding

This research did not receive any specific grant from funding agencies in the public, commercial or not-for-profit sectors. The authors also have no financial interest or benefit arising from the direct applications of their research.