EFFECT OF GLOBALIZATION ON SYNDICATED LOANS IN FRAGILE FIVE COUNTRIES: PANEL DATA ANALYSIS

Abstract

Syndicated loans have a wide application area in the world and can be defined as the loans which are allocated to the debtor by more than one lender organization as a financial tool used in money and capital markets. While large part of the syndicated loan volume in the world is being used by developed countries, in recent years, it is observed that the share in the syndicated market in the world has increased towards the developing countries with the effects of globalization. However, the opportunities of reaching new markets and increased competitiveness, as well as gaining prestige in the world market are arising for countries facing economic difficulties. In this study, the effects of globalization on the syndicated loan are analyzed by dynamic panel regression method for the period 2010-2014 for the group of fragile five countries. As a result of the analysis, it is determined that as globalization increases, the amount of syndicated loans increases.