Deposit insurance and private capital inflows: Further evidence

• We examine whether deposit insurance impacts on private capital inflows.
• We employ a simple differences-in-differences technique.
• Capital inflows improved more in countries that adopted deposit insurance.

We use a simple differences-in-differences technique to examine whether adopting explicit deposit insurance impacts on the scale of private capital inflows to developing economies. We present evidence suggesting that these inflows improved more in countries that adopted deposit insurance than in countries that did not adopt it.