This article analyzes how international cross-border lending originating from advanced countries responds to the use of loan-to-value (LTV) ratios in advanced, eurozone, and emerging countries from 2000 to 2020. Over the last two decades, countries have implemented and adjusted this prudential tool at different levels and times, thereby differentially affecting cross-border banking activities. The literature recommends international coordination of prudential policies to improve their effectiveness. Using a panel data analysis, we explore the impact of differences in LTV ratios across countries on the dampening of bilateral credit growth. The results provide evidence that the policies of lending and borrowing countries do not always simultaneously mitigate bilateral credit. Tightening LTV ratios in lending countries reduces credit flows, while tightening LTV ratios in borrowing countries tends to increase demand for bilateral credit. The level differential across countries can explain the volume of credit flows, which implies heterogeneous LTV ratios can reduce the ability to manage credit growth across countries. Therefore, an appropriate international coordination framework could support international credit stability; however, differences in financial and economic status, as well as the frequency of policy changes across countries, should also be considered, as they explain the direction and significance of bilateral credit flow.
This paper examines how the share of China-origin information and communication technology (ICT) services value added embodied in European manufacturing exports evolved between 1995 and 2018. The analysis has two aims. First, we document the long-run trajectory of Chinese ICT-services inputs in European manufacturing exports and benchmark it against broader shifts in foreign value added, foreign services content, and the ICT intensity of services embodied in exports. Second, we examine whether major institutional milestones - EU accession waves and the post-2013 Belt and Road Initiative (BRI) era - align with changes in exposure trajectories across European economies, treating these dates as structured reference points rather than as clean causal shocks. The results show a sustained increase in China-origin ICT-services inputs, alongside substantial cross-country and cross-industry heterogeneity. Benchmarking exercises indicate that the increase is not reducible to general servicification alone but reflects a re-weighting within the foreign ICT input basket. At the same time, the turning-point analysis does not support a single common break; the evidence is more consistent with gradual, heterogeneous, and specification-sensitive trajectory differences than with one discrete post-milestone shift. The paper therefore contributes new evidence on the measurement, benchmarking, and heterogeneity of Europe's exposure to Chinese ICT services in manufacturing exports.
